^^       R^-t-f  i' 


JOO'«'^Cvw.-t«««' 


I  T I O  H 


Belmont  Avknue 
ALLAS  6,  Texas 


UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LIBRARY 


'k-^^ 


OIL  ^  GAS  LAWS 
TEXAS 

1921  EDITION 


OIL  AND  GAS  RIGHTS 

IN 

STATE   LANDS 

BY 


GRAHAM  B.  SMEDLEY 

Of  the  Austin  Bar. 


OIL  &  GAS  LEGAL  SERVICE 

MARTIN  STATIONERY  COMPANY 

Dallas  Texas 

1921 


T      ^ 


FOREWORD 


The  reception  extended  the  1919  edition  of  this  work 
was  gratifying.  The  preparation  of  the  present  edition  was 
postponed  in  order  to  include  such  legislation  as  might  be 
passed  by  the  Thirty-seventh  Legislature, 

The  present  edition  includes  a  number  of  additional  laws. 
The  Validating  Act  of  the  Thirt}'-sixth  Legislature  is  not 
as  broad  as  anticipated  and  as  shown  by  the  paper  of  Mr. 
Smedley  the  provisions  of  the  laws  then  in  force  may  apply. 

The  paper  of  Mr.  Smedley  will  be  appreciated,  as  his 
studious  research  makes  plain  the  many  apparent  conflict- 
ing statutes  and  opinions. 

For  convenience,  the  chronological  order  of  the  laws  is 
continued. 

The  Conservation  Law  and  the  Pipe-Line  Law  are  fol- 
lowed respectively  by  the  Rules  of  the  Railroad  Commis- 
sion. 

We  trust  that  this  edition  will  prove  of  as  great  service 
as  our  other  publications. 


Copyright  1921 
By  H.  B.  MARTIN 
All  rights  Reserved. 


CONTENTS. 


OIL  &  GAS  RIGHTS  IN  STATE  LANDS 

I.  Lands  subject  to  prospecting;- 7 

II.  Laws  under  which  rights  are  acquired 20 

III.  Excess  in  sold  school  land 35 

IV.  Land  repurchased — Relief  Act  1913 36 

V.  Fitzgerald  vs.  Robison 37 

VI.     Recent  Acts  of  the  Legislature 38 

Texas   Constitutions.      (Excerpts) 39 

University  Lands  Act 40 

Sales  Act  of  1895 42 

Mineral  Reservation  of  1907 64 

Scrap  Act  65 

Opinions  of  the  Attorney  General 66,  70,  75 

TEXAS  LAWS  OF  OIL  &  GAS 

LAWS  OF  MINES  AND  MINING. 

Mineral  Reservation — Public  Lands.     1883 85 

Validating  Titles— Act  of   1919 87 

Mines  and  Mining— Act  of  1889 88 

Mines  and  Mining— Act  of  1895 _ 94 

Development  of  Minerals — Public  Lands  1913 103 

Present  Law  of  Mines  and  Mining — 1917 115 

Public  Lands — Fifteen-sixteenths  Released  to  Owner  of 

Soil 125 

Leasing  Islands  and  Shore  Lands 133 

Extending  Leases  on  Public  Lands 140 

Extending  Leases  on  Islands,  etc 144 

Grouping  Permits — University  Lands 146 

MISCELLANEOUS  LAWS. 

Cities  and  Towns — Leasing 149 

Injunctions    Restraining    Drilling 150 

Partition  of  Oil  and  Mineral  Lands 152 

Guardians  May  Execute  Leases 153 

Administrators  May  Execute  Leases 155 

Liens  for  Labor  and  Material 157 

Gross   Production   Tax 161 


783410 


CONSERVATION  LAW. 

General  Law  164 

Amendment 167 

Orders  of  Railroad  Commission 169 

PIPE  LINE  LAWS. 

General  Laws 183 

Orders  of  Railroad  Commission „ 191 

Rights  of  Eminent  Domain 200 

Gas  Pipe  Lines 204 

FORMS. 

Lease.     Producers'  88 2 1 7 

Assignmen t  o f  Lease 220 

Royalty    Contract 221 

Mineral  Deed 222 

Release  of  Oil  Lease 223 

INDEX. 


OIL  AND  GAS  RIGHTS 

In 
STATE   LANDS 


GRAHAM  B.  SMEDLEY 


ANALYTICAL  INDEX 

OIL  AND  GAS  RIGHTS  IN  STATE  LANDS 


I.    Lands  Subject  to  Prospecting. 

1.  Lands  in  which  State  has  Reserved  the  Minerals. 

2.  Reservation  of  Minerals  in  Sales  of  School  Lands 

Land  since  1895. 
IL     Laws  Under  which  Oil  and  Gas  Rights  Are  Acquired. 
L    Relinquishment  Act  of  1919. 

2.  Act  of  July  23,   1919,   Relating  to  Unsurveyed 

Land,  Islands,  Submerged  Land,  etc. 
(a)     Unsurveyed  School  Land, 
(b)     Islands,  Submerged  Lands,  etc..  Within 
Tidewater  Lands. 

3.  The  Mineral  Act  of  1917. 

(a)  River  Beds  and  Channels. 

(b)  Fresh  Water  Lakes. 

(c)  University  Land. 

(d)  Unsold  Surveyed  School  Land. 

(e)  Land  Sold  as  Unsurveyed  School  Land 

Reservation  of  Minerals. 
III.    Excess  Within  Sold  School  Land. 
I\'.    School  Land  Repurchased  Under  Relief  Act  of  1913. 
V.    Fitzgerald  vs.  Robison. 
VI.    Recent  Acts  of  the  Legislature. 
Texas  Constitution  (Excerpts). 
University  Lands  Act. 
Sales  Act  of  1895. 
.  Mineral  Reservation  of  1907. 
Scrap  Act. 
Opinions  of  Attorney  General. 


Mineral  Rights  in  State  Lands 

Oil  and  Gas  Rights 
in  State  Lands 


I.    LANDS   SUBJECT   TO   PROSPECTING. 

Generally  speaking,  the  lands,  or  areas,  upon  which 
rights  to  oil  and  gas  may  be  acquired  from  the  State,  are 
Public  School,  University  and  Asylum  Land,  whether  sur- 
veyed or  unsurveyed,  belonging  to  the  State;  fresh  water 
lakes,  river  beds  and  channels,  bays,  inlets,  marshes,  reefs 
and  salt  water  lakes,  belonging  to  the  State,  and  all  lands 
heretofore  or  hereafter  sold  or  disposed  of  by  the  State 
with  reservation  of  the  minerals.  These  are  the  different 
lands  and  areas  as  defined  in  the  several  laws  on  the  sub- 
ject; but  by  this  general  language  a  number  of  interesting 
and  practical  questions  are  suggested.  Perhaps  the  most 
interesting  of  these  is  the  question:  What  are  the  lands 
in  which  the  State  has  reserved  the  minerals,  or  owns  an 
interest  in  the  minerals?  There  arise  also  such  questions 
as :  What  river  beds  belong  to  the  State  ?  Where  is  the 
line  between  public  and  private  ownership  along  the  shore? 
What  changes  have  been  made  by  recent  legislation  in  State 
ownership  and  control  of  oil  and  gas  rights  ? 

(1)     The  Lands  in  Which  the  State  Has  Reserved 
THE  Minerals. 

The  history  of  this  subject  is  written  in  the  opinions  of 
the  Supreme  Court  in  the  following  cases:  Cox  vs.  Robi- 
son  (105  Texas  426,  150  S  .W.  1149)  ;  Cowan  vs.  Hardeman 
(26  Texas  217)  ;  Schendell  vs.  Rogan  (94  Texas  585,  63 
S.  W.  1001);  Colquitt-Tigner  Mining  Company  vs.  Ter- 
rell (95  Texas  452,  68  S.  W.  154)  ;  Greene  vs.  Robison  (109 


8  Oil  AND  Gas  Laws 

Texas  367,  210  S.  W.  498).  The  Cox  case  is  mentioned 
first,  because  its  opinion  contains  a  most  careful  and  com- 
plete discussion  by  Judge  Phillips  of  the  history  and  policy 
of  Texas  as  to  the  disposition  of  minerals,  beginning  with 
the  days  of  Mexican  sovereignty  and  coming  down  through 
the  time  of  the  Republic  to  a  comparatively  recent  date,  and 
shows  the  various  times  when  the  State  has,  by  Constitu- 
tional provisions  and  by  Legislative  Acts,  released  to  the 
owners  of  land  all  minerals  in  them. 

It  is  interesting  to  observe,  as  shown  in  the  opinion  in 
the  Cox  case,  that,  by  the  Mexican  law  and  under  the  Re- 
public through  the  adoption  of  the  policy  of  the  Mexican  law 
and  by  express  statutory  enactment,  all  mines  and  minerals 
were  reserved  to  the  sovereign,  and  that  minerals  did  not 
pass  by  the  ordinar)'  grant  of  land  without  express  words 
of  designation.  The  State,  however,  adopted  and  declared 
a  different  policy  when,  first  in  the  Constitution  of  1866, 
again  in  the  Constitution  of  1869,  again  in  the  Constitution 
of  1876,  again  in  the  Revised  Statutes  of  1879,  and  again  in 
the  Revised  Statutes  of  1895,  it  released  "to  the  owner  or 
owners  of  the  soil  all  mines  and  mineral  substances  that 
may  be  on  the  same."  (See  Constitution  of  1866,  Section 
39,  Article  VII ;  Constitution  of  1869,  Section  9,  Article  X ; 
Constitution  of  1876,  Section  7,  Article  XIV;  R.  S.  1879, 
Article  3800;  R.  S.  1895  (Article  4041.)  The  same  policy 
was  continued,  but  in  modified  form,  when  the  State,  by  the 
Act  approved  July  31,  1919  (Acts  Thirty-sixth  Legislature, 
Second  Called  Session,  page  249),  released,  upon  certain 
conditions,  to  the  owners  of  the  soil  an  undivided  fifteen- 
sixteenths  of  all  oil  and  gas  upon  and  within  the  surveyed 
free  school  and  asylum  land  and  portions  of  such  surveys 
that  had  theretofore  or  might  thereafter  be  sold  with  mineral 
reservation. 

The  Constitutional  provisions,  and  the  Articles  of  the  Re- 
vised Statutes  of  1879  and  1895,  above  referred  to,  were 
not  partial  or  conditional  releases  like  the  Act  of  1919,  nor 
w^ere  they  limited  to  oil  and  gas,  but  they  were  full  and  un- 
conditional releases  of  all  the  minerals  in  the  land.  They  did 
not  have  both  a  prospective  and  retrospective  eflfect  as  does 
the  Act  of  1919,  but  they  had  a  retrospective  eflfect  only, 
and  each  was  adopted  or  enacted  to  affect  the  lands  ac- 


Mineral  Rights  in  State  Lands  9 

quired  from  the  State  during  the  period  immediately  pre- 
ceding its  adoption  or  enactment.  The  question  directly  be- 
fore the  Court  in  the  Cox  case  was  whether  the  section  of 
the  Constitution  of  1876,  releasing  the  minerals,  operated 
prospectively  as  well  as  retrospectively,  and  it  was  held  that 
it  did  not. 

In  the  case  di  Greene  vs.  Robison  (109  Texas  367,210 
S.  W.  504),  the  Supreme  Court  reaffirmed  what  was  held  in 
the  Cox  case,  sustained  the  constitutionality  of  Article  4041 
R.  S.  1895.  which  was  attacked  in  so  far  as  it  applied  to 
sales  of  school  land  theretofore  made  with  reservation  of 
minerals,  and  held  that  the  purpose  and  effect  of  the  Article, 
although  but  a  re-enactment  of  the  statute  of  1879  in  identi- 
cal terms,  was  to  extend  the  provisions  of  that  statute  to 
1895,  "just  as  fully  as  it  was  intended  in  the  readoption  of 
the  successive  Constitutions  of  1869  and  1876,  of  the  origi- 
nal validating  provision  of  the  Constitution  of  1866,  that 
its  operation  should  be  extended  over  those  respective 
periods." 

When,  therefore,  one  desires  to  determine  whether  the 
State  owns  the  minerals  in  a  particular  piece  of  land,  the 
first  step  is  to  ascertain  when  the  land  was  first  disposed 
of  by  or  acquired  from  the  State.  If  it  was  acquired  from 
the  State  prior  to  the  date  when  the  Revised  Statutes  of 
1895  went  into  effect  (September  1,  1895),  then  the  State 
is  not  the  owner  of  the  minerals  or  of  any  interest  in  them. 
While  a  consideration  of  the  various  Acts  of  the  Legisla- 
ture prior  to  1895,  relating  to  the  disposition  of  public  lands, 
and  particularly  of  the  Acts  of  1883  as  construed  in  the 
Greene  case,  is  interesting,  for  practical  purposes  it  is  un- 
necessary- to  consider  or  discuss  the  same,  in  view  of  the 
Act  of  the  Legislature  of  1895  in  releasing  to  the  owners  of 
lands  all  minerals  in  them,  and  the  decision  of  the  Supreme 
Court  in  the  Greene  case  that  the  Act  was  valid  and  effect- 
ive for  that  purpose. 

A  discussion  of  the  question  when  one  becomes,  as 
against  the  State,  within  the  meaning  of  Article  4041  R.  S. 
1895,  an  owner  of  the  soil,  is  not  within  the  limits  of  this 
article,  but  brief  mention  may  be  made  of  some  of  the 
rules  announced  by  the  authorities  and  believed  to  be  appli- 
cable.    The   exact  question   is  not  discussed  in   the   cases. 


10  Oil  and  Gas  Laws 

It  is  settled  by  the  Greene  case,  however,  that  one  may  be 
an  owner  for  such  purpose  before  the  land  is  patented,  for 
the  land  involved  in  that  case  was  unpatented  school  land, 
and  the  Court  held  that  Article  4041  operated  to  release 
the  minerals  to  the  owner.  This  is  in  line  with  the  deci- 
sions to  the  effect  that  one  becomes  a  purchaser  of  school 
land  upon  the  day  his  application  is  filed  in  the  General 
Land  Office,  provided,  of  course,  the  application  is  in 
proper  form,  the  required  payment  is  made,  and  the  pur- 
chaser has  become  a  settler  upon  the  land  if  it  is  sold  upon 
condition  of  settlement.  See  Houston  Oil  Company  vs. 
McGrew  (107  Texas  220,  176  S.  W.  45);  Jumbo  Cattle 
Company  vs.  Bacon  &  Graves  (79  Texas  5,  14  S.  W.  840)  ; 
Pohle  vs.  Robertson  (102  Texas  274,  115  S.  W.  1166); 
Metzler  vs.  Johnson  (20  S.  W.  1116). 

Likewise,  it  is  doubtless  true  that  the  owner  of  a  certifi- 
cate becomes  the  owner  of  the  land,  within  the  meaning  of 
Article  4041,  after  he  has  made  his  location  and  caused  the 
survey  to  be  made  and  the  field  notes  filed  in  the  Land  Of- 
fice in  the  manner  and  time  required  by  law,  that  is,  after 
he  has  done  everything  required  of  him  to  receive  a  patent. 
See  Morrill  vs.  Bartlett  (.58  Texas  644)  ;  Hamilton  vs. 
Avery  (20  Texas  612)  ;  Stubblefield  vs.  Hanson,  (94  S.  W. 
406). 

One  who  has  acquired  land  under  the  homestead  dona- 
tion or  pre-emption  laws,  and  who  has  performed  all  the 
conditions  of  settlement,  occupancy  and  the  like,  as  speci- 
fied in  the  law  under  which  the  land  is  applied  for,  and  so  is 
entitled  to  a  patent,  is  believed  to  have  become  an  owner 
to  whom  the  minerals  are  released  by  this  Article.  But  a 
homesteader  or  pre-emptor  who  has  not  performed  the  con- 
ditions above  referred  to  has  but  an  inchoate  right  and  can- 
not be  said  to  be  an  owner  within  the  terms  of  this  Article. 
See:  Gallup  vs.  Thacker  (103  Texas  310,  126  S.  W.  1120)  ; 
Pope  vs.  Anthony  (68  S.  W.  521)  ;  Buford  vs.  Bostick  (58 
Texas  63)  ;  Votaw  vs.  Pettigrew  (38  S.  W.  215)  ;  Wise 
County  Coal  Company  vs.  Phillips,  (51  S.  W.  331). 

Speaking  generally,  it  may  be  safely  said  that  Article 
4041  R.  S.  1895  had  the  effect  of  releasing  the  minerals  in 
the  land  to  every  person  who,  prior  to  September  1,  1895, 
as  against  the  State,  had  become  the  equitable  owner  of  the 


Mineral  Rights  in  State  Lands  11 

land  or  who  had  taken  all  the  steps  necessary  to  be  taken 
before  demanding  a  patent,  as  well,  of  course,  as  to  those 
who  had  theretofore  acquired  the  legal  title  evidenced  by 
the  patent. 

The  greater  part  of  the  land  which  has  been  acquired 
from  the  States  since  1895  has  been  purchased  as  pubUc 
school  or  asylum  land.  It  is  to  be  remembered  that  as 
early  as  1900  all  of  the  vacant  unappropriated  pubHc  domain 
in  the  State  except  that  included  in  lakes,  bays  and  islands 
along  the  Gulf  of  Mexico  within  tide-water  limits,  was  set 
apart  to  the  public  school  fund.  (Acts  1900,  First  Called 
Session,  page  29.) 

As  to  lands  acquired  from  the  State  since  1895,  other 
than  by  purchase  as  school  or  asylum  land,  it  may  be  said 
that,  because  of  the  policy  adopted  and  announced  in  the 
Constitutions  and  laws  of  the  State  favorable  to  private  as 
against  State  ownership  of  the  minerals  in  lands  disposed 
of  by  the  State,  the  owner  of  the  land  is  the  owner  of  the 
minerals  in  the  land,  except  where,  in  the  grant  or  in  the 
documents  evidencing  the  acquisition  of  the  land  from  the 
State,  the  minerals  are  expressly  reserved.  In  other  words, 
the  rule  is  the  reverse  of  that  in  force  during  the  days  of 
Mexican  sovereignty  and  of  the  Republic,  to  the  effect  that 
minerals  did  not  pass  by  the  ordinary  grant  without  express 
words  of  designation. 

As  an  example  of  lands  acquired  from  the  State  since 
1895,  other  than  public  school  or  asylum  lands,  the  Board 
of  Regents  of  the  University  have  had,  for  purposes  of 
sale  and  lease  (until  a  change  was  made  by  the  Mineral 
Act  of  1913,  as  far  as  mineral  permits  and  leases  are  con- 
cerned) exclusive  control  of  the  lands  set  apart  to  the  Uni- 
versity, with  authority  to  sell  the  same  at  such  prices  and 
upon  such  terms  and  conditions  as  may  to  them  seem  to  be 
best  for  the  University.  (Acts  Twenty-fourth  Legislature, 
Regular  Session,  page  19;  Gammel's  Laws,  749;  R.  S.  1895. 
Articles  4263a-4263c;  R.  S.  1911,  Articles  2633-2635). 
Although  most  of  the  University'  lands  remain  unsold,  there 
have  been  some  sales  made,  and,  for  the  purpose  of  deter- 
mining whether  in  such  sales  the  minerals  have  been  re- 
served to  the  State,  it  is  necessary  to  examine  the  contract 
or  other  documents  evidencing  the  particular  sale.     If  such 


12  Oil  and  Gas  Laws 

contract  or  document  contains  nothing  expressly  reserving 
the  minerals  to  the  State,  the  purchaser  has  acquired  the 
minerals  as  well  as  the  surface. 

(2)     Reservation    oe   Minerals   in    Sales   oe    School 
Land  Since  1895. 

From  1895  (and  indeed  from  1889)  and  until  the  pas- 
sage of  the  Mineral  Act  of  1913,  there  were  in  effect  (with 
some  unimportant  change  in  the  law  first  hereinafter  men- 
tioned) two  laws  regulating  the  acquisition  from  the  State 
of  public  school  and  asylum  land.  One  was  the  Sales  Act 
of  1895  and  its  amendments  (10  Gammel's  Laws,  p.  793; 
Revised  Statutes  1895,  articles  4218b-4218z).  This  law 
provided  for  and  regulated  the  sales  of  all  surveyed  public 
school  and  asylum  land.  It  authorized  and  made  it  the  duty 
of  the  Commissioner  of  the  General  Land  Office  (or  origi- 
nally of  State  agents  appointed  by  and  acting  under  him), 
before  offering  the  land  for  sale,  to  classify  it  into  agricul- 
tural, pasture  or  timber  land  and  to  place  on  it  a  value  or 
sale  price.  No  reference  was  made  in  this  law  to  minerals 
or  to  a  reservation  of  the  minerals  in  the  sale.  From  time 
to  time  laws  were  enacted  providing  for  and  regulating 
the  sale  of  unsurveyed  public  free  school  land  (Acts  First 
Called  Session,  Twenty-sixth  Legislature,  p.  32,  Section  6; 
Acts  Regular  Session  Twenty-seventh  Legislature,  p.  254, 
Section  6 ;  Acts  Regular  Session,  Twenty-ninth  Legislature, 
p.  167,  Section  8;  R.  S.  1911,  Art.  5432).  In  each  of  these 
laws  it  was  made  the  duty  of  the  Commissioner,  after  the 
land  was  surveyed,  to  classify  and  value  the  land  in  the 
same  mani.er  as  surveyed  lands  were  classified  and  valued, 
and  the  terms  and  conditions  of  the  sale  were  in  general  the 
same  as  the  terms  and  conditions  of  the  sale  of  surveyed 
land.  Nor  in  the  laws  relating  to  the  sale  of  unsurveyed 
land  was  any  reference  made  to  minerals  or  to  reservation 
of  minerals. 

Since  the  enactment  of  the  Sales  Law  of  1895  there 
have  been  many  new  laws  enacted  regulating  the  sale  of 
public  school  land  and  many  of  the  terms  and  conditions 
of  the  sales  have  been  changed.  None  of  these  laws  has 
repealed  the  Sales  Act  of  1895,  except  in  so  far  as  they 
have  contained  provisions  in  conflict  or  inconsistent  with 


Mineral  Rights  in  State  Lands  13 

some  of  its  terms.  (See  Estis  vs.  Terrell,  99  Tex.  622,  92 
S.  VV.  407;  Houston  vs.  Koonce,  106  Tex.  50,  156  S.  W. 
202;  Gaddis  vs.  Terrell,  101  Tex.  574,  110  S.  W.  429;  Lefe- 
ver  vs.  Jackson,  135  S.  W.  212  ;  Ford  vs.  Robison,  201  S.  W. 
401).  The  several  later  Sales  Acts,  with  the  exception  of 
the  Act  of  1907  and  the  Act  of  1919,  contain  nothing  with 
reference  to  reservation  of  minerals.  Section  6f  of  the  Act 
of  1907  (Acts  Thirtieth  Legislature,  Regular  Session,  p. 
491)  contains  the  following:  "The  land  which  is  now  or 
may  hereafter  be  classed  as  mineral  may  be  sold  for  agri- 
cultural or  grazing  purposes,  but  all  sales  of  such  land  shall 
be  upon  the  express  condition  that  the  minerals  shall  be 
and  are  reserved  to  the  fund  to  which  it  belongs,  and  such 
reservation  shall  be  stated  in  all  apphcations  to  purchase." 
Section  2  of  the  Sales  Act  of  1919  (Acts  Regular  Session, 
Thirty-sixth  Legislature,  p.  312)  amending  Article  5407 
R.  S.  1911,  contains  this  language:  "The  land  included  in 
this  Act  shall  be  sold  with  the  reservation  of  the  oil,  gas, 
coal  and  other  minerals  that  may  be  therein  to  the  fund  to 
which  the  land  belongs  and  all  applications  shall  so  state." 

The  second  law  in  effect  during  the  period  from  1895 
until  the  passage  of  the  Mineral  Act  of  1913,  was  the  Min- 
eral Act  of  1895,  which  was  practically  identical  with  the 
Mineral  Act  of  1889,  which  it  superseded.  This  Act  ap- 
pears as  Articles  3498a  to  3498t,  R.  S.  1895  (Acts  Twenty- 
fourth  Legislature,  Regular  Session,  p.  197;  10  Gammel's 
Laws,  p.927).  This  Act  expressly  reserved  from  sale,  ex- 
cept under  its  provisions,  all  public  school,  university, 
asylum  and  other  public  lands  containing  valuable  mineral 
deposits.  By  following  the  steps  set  out  in  this  Act  one 
might  acquire  the  right  to  enter  upon  the  lands  and  pros- 
pect for  minerals,  including  oil  and  gas,  and  to  obtain  a 
patent  of  the  land  and  minerals.  By  one  section  of  the  Act 
(Article  3498b,  R.  S.  1895)  it  was  made  the  duty  of  the 
mineralogical  and  geological  survey  to  examine  all  public 
school  and  other  pubHc  land  and  to  designate  such  tracts 
as  were  apparently  mineral  bearing  as  mineral  lands  for  the 
purpose  of  the  Act.  By  another  section  of  the  Act  (Arti- 
cle 3498n,  R.  S.  1895),  it  was  provided  that  an  applicant 
desiring  to  buy  any  of  the  lands  embraced  in  the  Act,  ex- 
cept where  the  application  was  made  under  the  Act,  should 


14  Oil  and  Gas  Laws 

make  oath  that  to  the  best  of  his  knowledge  there  were  not 
any  of  the  minerals  embraced  in  the  Act  thereon,  and  that 
any  sale  made  under  such  application  should  be  understood 
to  be  with  the  reservation  of  the  minerals  thereon.  The 
Mineral  Act  of  1895  was  in  effect  until  it  was  expressly  re- 
pealed by  the  Mineral  Act  of  1913.  (Acts  Thirty-third 
Legislature,  Regular  Session,  p.  409.) 

There  are  two  very  interesting  opinions  of  the  Supreme 
Court  construing  the  Sales  Act  of  1895  and  the  Mineral 
Act  of  1895,  as  far  as  reservation  of  the  minerals  is  con- 
cerned. The  first  opinion  was  written  by  Judge  Brown  in 
the  case  of  Schendell  vs.  Rogan  (94  Tex.  585,  63  S.  W. 
1001).  In  that  case  the  respondent,  the  Commissioner  of 
the  Land  Office,  made  the  contention  that  a  purchaser  of 
scool  land,  which  had  been  classified  and  sold  as  agricul- 
tural land,  was  not  entitled  to  a  patent  and  that  the  sale 
to  him  was  invalid,  because  he  had  not  made  the  affidavit 
required  by  the  Mineral  Act  to  the  effect  that  according  to 
the  best  of  his  knowledge  and  belief  the  land  contained  no 
valuable  minerals.  It  was  argued  that  the  two  laws,  the 
mineral  law  and  the  sales  law,  should  be  construed  to  mean 
that,  unless  public  school  land  and  the  minerals  in  it  were 
sold  under  the  mineral  law,  it  could  only  be  sold  with  reser- 
vation of  the  minerals,  and  that  the  effect  of  Articles  3498a 
and  3498n  of  the  mineral  law  was  to  reserve  from  sale,  ex- 
cept under  its  terms,  all  land  containing  valuable  minerals 
whether  known  or  not,  unless  the  purchaser  made  the  affi- 
davit above  referred  to.  The  Supreme  Court  held,  how- 
ever, that  lands  which  did  not  contain  valuable  minerals 
were  not  included  in  Article  3498a,  and  that  the  article 
requiring  the  oath  of  the  applicant  that  the  land  contained 
no  minerals  did  not  apply  to  lands  classified  as  agricultural 
and  not  known  to  be  mineral  bearing,  and  that  a  sale  made 
under  an  application  for  agricultural  lands,  which  had  been 
classified  as  such,  carried  a  good  title  to  the  purchaser  and 
entitled  him  to  a  patent  granting  the  land  without  the  reser- 
vation of  the  minerals.  The  Court  was  careful  to  state 
that  it  was  not  called  upon  to  decide  what  would  be  the 
effect  of  prior  actual  knowledge  by  the  purchaser  of  the 
existence  of  valuable  minerals  in  the  land. 

It  is  settled  by  the  Schendell  case  that  under  the  Act  of 


Mineral  Rights  in  State  Lands  15 

1895,  lands  not  known  to  contain  valuable  minerals,  and 
classified  as  agricultural,  grazing  or  timbered  and  so  sold, 
and  not  formally  designated  as  mineral  lands,  are  sold  with- 
out reservation  of  the  minerals.  The  stipulation  in  the 
Act  of  1907  to  the  effect  that  land  classed  as  mineral,  could 
be  sold  for  agricultural  or  grazing  purposes  but  that  in  such 
sales  the  minerals  should  be  reserved,  made  no  change  in 
the  Acts  of  1895  as  thus  construed,  but  it  rather  adopted 
and  emphasized  the  construction  given  those  Acts  in  the 
Schendell  case,  for  the  clear  implication  from  the  language 
of  the  Act  of  1907  above  referred  to  is  that  land  not  classed, 
or  formally  designated,  as  mineral,  is  sold  without  reser- 
vation of  the  minerals.  Nor  does  it  appear  that  the  more 
positive  language  of  the  Sales  Act  of  1919,  to  the  effect  that 
the  land  included  in  the  Act  should  be  sold  with  reserva- 
tions of  the  minerals,  made  any  change  in  the  law  as  to  res- 
ervation of  minerals,  for  in  the  Greene  case  (109  Texas 
267.  210  S.  W.  498)  the  Supreme  Court  held,  in  an  able 
opinion  by  Chief  Justice  Phillips,  that  almost  identical  lan- 
guage in  the  Act  of  1883  did  not  operate  to  reserve  the  min- 
erals in  lands  classified  and  sold  as  agricultural  and  not 
known  to  contain  valuable  minerals. 

The  second  of  the  Supreme  Court  opinions  above  re- 
ferred to,  construing  the  sales  laws  and  the  mineral  law  in 
effect  after  1895,  was  written  by  Judge  Williams  in  the 
case  of  Colquitt-Tigner  Mining  Co.  vs.  Terrell  (95  Tex. 
452,  68  S.  W.  154).  In  the  Schendell  case  the  Commis- 
sioner had  taken  the  position,  not  sustained  by  the  Supreme 
Court,  that  the  provisions  in  the  Mineral  Act  of  1895  re- 
serving the  minerals  to  the  State  applied  broadly  to  all  sales 
of  public  school  and  asylum  lands  however  classified.  In 
the  Colquitt-Tigner  case  the  Commissioner  sought  to  give 
the  Mineral  Act  a  very  narrow  application  and  contended 
that  no  mineral  rights  could  be  acquired  under  it  except  in 
lands  which  had  been  formally  designated  as  mineral  bear- 
ing by  the  mineralogical  and  geological  survey.  The  po- 
sition taken  by  the  Commissioner  in  the  latter  case  provided 
the  occasion  for  a  discussion  by  Judge  Williams  of  the  ex- 
tent of  the  authority  of  the  Commissioner  of  the  L,and  Of- 
fice to  determine  from  sources  other  than  the  mineralogical 
and  geological  survey  what  lands  are  and  what  lands  are 


16  Oil  and  Gas  I^aws 

not  mineral  lands,  and  because  of  this  discussion  in  the 
opinion,  the  Colquitt-Tigner  case  has  been  considered  an 
authority  holding  that  the  Commissioner  is  empowered  to 
classify  or  designate  public  school  and  asylum  land  as  min- 
eral land.     What  the  case  in  fact  holds  is  that  pubUc  school 
and  asylum  land  may  be  within  the  terms  of  the  Mineral 
Act  of   1895   and  mineral   rights   may  be  acquired  in  the 
land  under  that  Act,  even  though  it  has  not  been  formally 
designated  as  such   for    the    mineralogical  and    geological 
survey,  it  being  within  the  authority  of  the  Commissioner 
to  determine   from  information    obtained    otherwise    than 
from  such  survey  whether  or  not  the  land  is  mineral  for 
the  purpose  of    disposition    under  the    mineral    law.     Al- 
though  the  question   was   not   directly    before  the    Court 
whether  the  Commissioner   for  the  purpose  of  sales  under 
the  Sales  Act  was  authorized  to  class  oi"  designate  public 
school  and  asylum  land  as  mineral  land,  with  the  result  that 
the  minerals  would  be  reserved  to  the  State  in  the  event 
of  sale,  the  reasoning  in  the  opinion  tends  strongly  to  indi- 
cate, and  indeed  is  practically  convincing,  that  he  has  such 
authority.     This  is  especially  true  of  that  part  of  the  opin- 
ion to  the  effect  that  the  Commissioner,  being  charged  with 
the  duty  of  disposing  of  the  land  under  the  two  laws,  must 
determine  in  some  way  the  character  of  the  land,  as  min- 
eral or  not,  in  order  to  know  which  law  is  to  govern  his 
action. 

It  is  true  that  a  purpose  is  disclosed  by  Article  3498b  of 
the  Mineral  Law  of  1895  that  the  geological  and  mineralog- 
ical survey  shall  examine  all  the  public  lands  and  designate, 
for  the  purposes  of  the  law,  such  tracts  as  are  apparently 
mineral  bearing.  Such  survey  was  first  authorized  to  be 
made  in  the  year  1888  under  the  direction  of  the  Commis- 
sioner of  Agriculture,  Insurance,  Statistics  and  History 
(Acts  First  Special  Session,  Twentieth  Legislature,  p.  10; 
9  Gammel's  Laws,  p.  1008).  An  appropriation  of  $15,000.00 
was  made  for  that  purpose.  Attention  was  called  in  the 
opinion  of  the  Colquitt-Tigner  case  to  the  fact  that  the 
Legislature,  which  passed  the  Mineral  Act  of  1895,  at  the 
same  session  refused  to  make  an  appropriation  for  the  con- 
tinuation of  the  mineralogical  and  geological  survey.  Later, 
in  the  year  1901,  an  act  was  passed  directing  the  Board  of 


Mineral  Rights  in  State  Lands  17 

Regents  of  the  University  to  make  a  mineral  survey  of  all 
the  lands  belonging  to  the  public  schools,  the  university 
and  asylums,  and  an  appropriation  of  $10,000.00  was  made 
for  that  purpose.  (Acts,  Regular  Session,  Twenty-seventh 
Legislature,  p.  32.)  Some  work  was  done  under  both  of 
these  Acts,  but  it  covered  comparatively  very  little  territory, 
and  inquiry  at  the  Land  Office  discloses  the  fact  that  from 
these  surveys  no  data  or  information  has  come  into  that 
office  in  any  way  adequate  for  the  designation  of  the  public 
lands  of  the  State  as  mineral  or  non-mineral.  Because  there 
has  been  no  adequate  mineralogical  and  geological  survey, 
and  acting  under  the  authority  of  the  Colquitt-Tigner  case, 
or  under  the  reasoning  of  the  opinion  in  that  case,  it  has 
been  the  practice  of  the  Commissioner  of  the  Land  Office 
for  many  years,  upon  information  obtained  from  any  avail- 
able sources,  to  designate  certain  of  the  public  school  and 
asylum  lands  as  mineral.  The  practice  has  been  to  treat 
and  make  this  designation  as  a  part  of  the  classification  of 
the  lands,  although  strictly  speaking  it  is  not  a  classifica- 
tion, because  statutory  authority  is  given  to  classify  these 
lands  only  as  agricultural,  grazing  or  timbered  lands.  (R.  S. 
1911,  article  5407.)  In  the  opinion  in  the  Schendell  case 
(94  Tex.  p.  595)  attention  is  called  to  the  fact  that  no 
"class"  as  mineral  land  is  recognized  by  the  law,  but  that  it 
is  contemplated  that  lands  which  have  been  classified  as  agri- 
cultural, pasture  or  timbered  lands,  and  are  found  to  be 
apparently  mineral  bearing,  shall  be  designated  as  mineral 
lands.  The  distinction  between  technical  classification  as 
agricultural,  grazing  or  timbered  lands  and  designation  as 
mineral  lands  may  become  important.  For  example,  noti- 
fication to  the  county  clerk  is  essential  to  the  completion 
of  a  classification  (Article  5407,  R.  S.  1911),  but  it  may  very 
well  be  doubted  whether  it  is  essential  that  the  county  clerk 
be  notified  of  the  designation  of  the  land  as  mineral. 

The  statutes  may  be  searched  in  vain  for  any  express 
authority  on  the  part  of  the  Commissioner  of  the  Land 
Office  to  designate  lands  as  mineral,  so  that  when  disposed 
of  under  the  Sales  Act  the  minerals  are  reserved  to  the 
State.  Such  authority  rests  upon  implication,  along  the 
line  of  reasoning  contained  in  the  Colquitt-Tigner  case,  and 
upon  departmental  construction  and  practice.     It  seems  to 


18  Oil  and  Gas  Laws 

have  been  assumed  by  the  Legislature  in  the  enactment  of 
Section  6f  of  the  Sales  Act  of  1907  (Article  5433,  R.  S. 
1911),  providing  tliat  land  classed  as  mineral  might  be  sold 
for  agricultural  or  grazing  purposes  but  that  such  sales 
should  be  with  reservation  of  the  minerals,  that  the  Com- 
missioner of  the  Land  Office  had  the  authority  to  class 
lands  as  mineral.  In  the  case  of  Camp  vs.  Smith  (166 
S.  W.  22),  in  which  application  for  writ  of  error  was  re- 
fused, it  seems  to  have  been  assumed  by  the  Court  of  Civil 
Appeals  that  the  Commissioner  has  authority  to  class  lands 
as  mineral  and  that  when  the  land  is  so  classed  the  minerals 
are  reserved  to  the  State.  Some  lawyers  seriously  question 
the  existence  of  such  authority  and  take  the  position  that 
when  land  has  been  so  classed  and  sold  the  purchaser  has 
acquired  all  of  the  minerals  as  well  as  the  surface,  because 
of  a  lack  of  power  on  the  part  of  the  Commissioner  to  des- 
ignate the  land  as  mineral.  It  seems  more  than  likely,  how- 
ever, that  the  authority  may  be  sustained,  by  reason  of  the 
decisions  above  referred  to,  and  on  account  of  long  contm- 
ued  departmental  practice. 

To  sum  up,  as  a  result  of  the  Schendell  case,  the  Col- 
quitt-Tigner  case  and  the  statutes  above  referred  to,  the 
rule  seems  to  be,  as  to  all  sales  of  public  school  and  asylum 
land  from  1895  to  the  present  time  (not  made  under  the 
Mineral  Act  of  1895)  that  when  the  Commissioner  of  the 
Land  Office  before  the  sale  formally  classed,  or  designated, 
the  land  as  mineral,  the  minerals  were  in  the  sale  reserved 
to  the  State,  but  when  the  land  at  the  time  of  the  sale  had 
not  been  formally  classed,  or  designated,  as  mineral  and 
the  purchaser  did  not  know  that  it  contained  valuable  mm- 
erals,  the  purchaser  acquired  the  minerals  as  well  as  the 
surface.  It  may  be,  as  suggested  in  the  Schendell  case, 
that  when  the  purchaser  knows  at  the  time  that  the  land 
contains  valuable  minerals,  although  it  has  not  been  so 
classed,  the  State  could  set  aside  the  sale  as  against  such 
original  purchaser,  but  it  seems  that  as  against  subsequent 
innocent  purchasers,  relying  upon  the  absence  of  a  formal 
mineral  designation,  the  sale  could  not  be  set  aside. 

It  is  essential,  therefore,  in  order  to  ascertain  whether 
the  State  in  the  sale  of  a  tract  of  public  school  land  or  asy- 
lum land  since  1895  reserved  the  minerals,  to  examine  the 


Mineral  Rights  in  State  IvAnds  19 

records  of  the  General  Land  Office  and  ascertain  whether 
at  the  time  of  the  sale  the  land  was  formally  classed  or  des- 
ignated as  mineral.  Such  information  may  generally  be  ob- 
tained from  the  sales  register,  but  for  the  sake  of  accuracy 
it  should  be  sought  in  the  classification  records.  Recitals 
in  the  application  for  the  purchase  of  the  land  as  to  min- 
eral classification  or  as  to  waiver  of  the  minerals  are  not 
controlling,  for  whether  these  matters  are  correctly  re- 
flected by  the  application  or  not,  it  is  the  operation  of  the 
law  and  not  the  language  of  the  application  that  reserves 
the  minerals  to  the  State  in  lands  classed  as  mineral.  Nor, 
in  determining  the  ownership  of  the  minerals,  can  complete 
reliance  be  placed  in  the  recitals  in  the  patent,  when  the 
land  has  been  patented,  for  until  about  the  year  1911  it  was 
the  practice  of  the  Land  Office,  even  where  the  minerals 
had  been  reserved  to  the  State  in  the  sale,  to  issue  patents 
containing  no  reference  to  the  minerals  but  in  the  usual 
form  granting  and  releasing  to  the  patentee  all  of  the 
State's  interest  in  the  land.  Such  patent,  however,  could 
not  enlarge  the  rights  acquired  by  the  purchase  or  deprive 
the  State  of  the  minerals  which  it  had  reserved  in  the  sale, 
because  it  has  been  uniformly  held  that  the  issuance  of  a 
patent  is  a  ministerial  act  and  that  its  issuance  contrary  to 
law  cannot  prevent  even  an  individual  from  enforcing 
against  the  patentee,  or  one  holding  under  him,  a  right  ex- 
isting prior  to  the  issuance  of  a  patent.  See  :  Kempner  vs. 
State  (72  S.  W.  888)  ;  Day  Land  and  Cattle  Company  vs. 
State  (68  Tex.  526,  4  S.  W.  865)  ;  Dunn  vs.  Wing  (103 
Tex.  393,  128  S.  W.  108)  ;  Kirby  vs.  Conn  (109  Tex.  540, 
212  S.  W.  469).  If  an  individual  can  enforce  such  exist- 
ing right  against  a  patent,  it  certainly  cannot  be  true  that  a 
patent,  making  no  reference  to  reservation  of  minerals,  can 
deprive  the  State  of  its  right  to  the  minerals  reserved  when 
the  sale  was  made.  Since  1911,  and  especially  since  the 
case  of  Cox  vs.  Robison  was  decided  (November  27,  1912, 
105  Tex.  426),  it  has  been  the  practice  in  the  General  Land 
Office,  in  the  issuance  of  patents  to  school  and  asylum  land, 
which  were  sold  with  reservation  of  the  minerals,  to  in- 
sert in  the  patent  a  clause  showing  such  reservation. 


20  Oil  and  Gas  Laws 

II.     LAWS  UNDER  WHICH  OIL  AND  GAS  RIGHTS 
ARE  ACQUIRED. 

(1)  The;  Re;linquishme;nt  Act  op  1919. 
The  foregoing  tedious  discussion  of  the  reservation  of 
the  minerals  in  the  sales  of  school  land  would  have  been 
unnecessary,  had  the  Act  of  1919  (Acts,  Second  Called  Ses- 
sion, Thirty-cixth  Legislature,  p.  249)  been  a  full  and  un- 
conditional release  of  the  minerals  to  the  land  owners,  but 
because,  as  has  been  noted,  it  is  but  a  partial  and  condi- 
tional relinquishment,  it  is  necessary,  in  order  to  know 
where  the  right  to  the  oil  and  gas  in  a  particular  tract  of 
surveyed  school  or  asylum  land  lies,  to  ascertain  whether 
the  land  was  sold  with  or  without  reservation  of  minerals 
in  the  State.  If  it  was  sold  without  reservation  of  the  min- 
erals, the  right  to  the  oil  and  gas  is  in  the  land  owner,  and 
he  is,  of  course,  at  liberty  to  dispose  of  such  right  upon  any 
terms  and  conditions  that  may  be  agreed  upon.  But  if  the 
land  was  sold  by  the  State  with  reservation  of  the  minerals 
and  no  one  fixed  a  right  to  the  oil  and  gas  under  the  law 
in  effect  prior  to  the  time  when  the  1919  Act  went  into 
eflfect  (October  21,  1919),  then  the  land  comes  within  the 
terms  of  the  1919  relinquishment  Act.  By  its  terms  it  re- 
leases to  the  owner  of  surveyed  school  and  asylum  land 
heretofore  or  hereafter  sold  with  reservation  of  the  min- 
erals, an  undivided  fifteen-sixteenths  interest  in  all  oil  and 
gas  in  the  land  and  makes  such  land  owner  the  agent  of  the 
State  for  the  purpose  of  selling  or  leasing  the  oil  and  gas 
on  such  terms  and  conditions  as  the  owner  may  deem  best, 
provided  the  lessee  or  purchaser  must  in  every  instance 
pay  to  the  State  ten  cents  per  acre  and  in  case  of  produc- 
tion the  undivided  one-sixteenth  of  the  value  of  the  oil  and 
gas.  The  Act  requires  the  land  ow^ner,  lessee  or  other  per- 
son in  charge,  to  protect  the  land  by  drilling  offset  wells 
under  penalty  of  termination  and  reversion  to  the  school 
fund  of  the  relinquishment  granted  by  the  Act.  Similar 
termination  is  provided  for  in  the  event  of  the  failure  of 
any  person  operating  under  the  Act  to  pay  the  royalty  or 
other  money  due  the  State,  it  being  provided,  however,  that 
the  interest  of  the  owner  of  the  soil  in  the  oil  and  gas  shall 
not  on  that  account  be  forfeited.  In  the  event  of  the  ter- 
mination of  the  relinquishment  or  of  the  rights  of  the  per- 


Mineral  Rights  in  State  Lands  21 

son  operating  under  the  Act,  for  the  reasons  above  re- 
ferred to,  it  is  provided  that  the  Commissioner  of  the  Land 
Office  shall  take  possession  of  the  land  and  sell  the  oil  and 
gas  in  the  same  to  the  one  who  will  pay  the  highest  price 
therefor  in  addition  to  a  one-eighth  royalty,  one-half  of 
which  is  to  be  paid  to  the  State  and  the  other  half  to  the 
owner  of  the  soil.  While  the  Act  is  somewhat  ambiguous 
in  this  respect,  taken  as  a  whole,  it  seems  to  disclose  a  pur- 
pose that  the  owner  of  the  soil,  where  there  are  permits  or 
leases  issued  under  the  terms  of  the  prior  law,  shall  be 
entitled  to  one-half  of  the  one-eighth  royalty  reserved  by 
the  State.  This  is  indicated  by  the  6th  and  the  18th  sec- 
tions of  the  Act  and  also  by  the  wording  of  Section  10,  to 
the  effect  that  the  relinquishment  of  the  fifteen-sixteenths 
to  the  owner  of  the  soil  is  made  subject  to  the  rights  exist- 
ing under  valid  permits  to  prospect  for  oil  and  gas  there- 
tofore issued,  or  which  may  thereafter  be  issued  upon  valid 
applications  then  on  file,  and  further  providing  that  when 
the  rights  under  such  permits  shall  be  terminated  the  relin- 
quishment shall  be  fully  effective. 

It  has  been  suggested  that  the  relinquishment  Act  of 
1919  is  unconstitutional  as  amounting  to  a  donation  of 
school  land  or  an  interest  in  school  land.  Such  difficulty 
was  sought  to  be  avoided  by  the  statement  in  the  first  sec- 
tion of  the  Act  that  the  owner  of  the  soil  is  made  the  agent 
of  the  State  for  the  purpose  of  facilitating  the  development 
of  the  State's  oil  and  gas  resources  and  that  the  relinquish- 
ment is  made  in  consideration  of  such  services.  That  part 
of  the  Act  which  gives  to  the  owner  of  the  soil  one-half  of 
the  State's  royalty  in  permits  issued  under  the  prior  law 
(if  the  Act  has  that  effect)  may  perhaps  be  sustained  by 
reason  of  the  fact  that  the  Act  recites  that  such  one-six- 
teenth, and  the  payment  of  ten  cents  per  acre  to  the  owner 
of  the  soil,  are  in  payment  for  all  damages  to  the  soil  aris- 
ing out  of  development  under  the  permit.  It  may  be  also 
that  the  relinquishment  can  be  sustained  as  being  in  the 
nature  of  a  validating  act,  as  it  was  on  this  ground  that 
Article  4041,  Revised  Statutes  1895,  absolutely  releasing 
the  minerals,  was  sustained  in  the  Greene  case.  (109  Tex. 
367,  210  S.  W.  498,  504.) 

It  is  to  be  observed  that  the  relinquishment  is  both  to  ex- 


22  Oil  and  Gas  Laws 

isting  owners  and  to  those  who  may  in  the  future  become 
owners  of  the  soil,  and  that  the  relinquishment  becomes  ef- 
fective in  the  latter  instance  only  at  the  time  the  land  is 
sold  and  provided  only  that  no  one  has  before  the  sale  ac- 
quired under  any  other  law  a  valid  right  to  the  oil  and 
gas  in  the  land.  In  other  words,  even  since  the  relinquish- 
ment Act  of  1919  went  into  effect,  the  right  to  oil  and  gas 
in  unsold  surveyed  public  school  and  asylum  and  can  be 
acquired  by  complying  with  the  terms  of  the  Mineral 
Act  of  1917  (Acts  Regular  Session,  Thirty-fifth  Legisla- 
ture, p.  158),  and  when  such  rights  are  so  acquired  and  con- 
tinue in  effect  a  subsequent  purchaser  of  the  land  gets  no 
interest  in  the  oil  and  gas,  (See  Section  11,  Acts  Second 
Called  Session,  Thirty-sixth  Legislature,  p.  252.) 

It  is  not  our  purpose  to  discuss  in  detail  the  various  pro- 
visions of  the  relinquishment  Act.  What  has  been  said 
above  is  for  the  purpose  of  pointing  out  the  nature  and 
extent  of  the  interests  of  the  State  and  of  the  surface  own- 
ers in  the  oil  and  gas  in  surveyed  school  and  asylum  land, 
and  further  to  call  attention  to  some  of  the  questions  of 
construction  suggested  by  the  rather  vague  and  ambiguous 
language  of  the  Act.  A  brief  consideration,  however,  of 
the  meaning  of  the  term  "surveyed  land"  seems  to  be  justi- 
fied by  the  fact  that  the  Act  relates  only  to  surveyed  pub- 
lic school  and  asylum  land,  without  defining  what  is  meant 
by  "surveyed  land,"  and  by  the  further  fact  that  the  same 
Legislature  passed  another  law  providing  for  the  acquisi- 
tion of  oil  and  gas  in  unsurveyed  public  school  land  with- 
out defining  it,  (Acts  Second  Called  Session,  Thirty-sixth 
Legislature,  p.  51.)  What  the  legislative  mind  was  directed 
to  was  doubtless  surveyed  land  as  distinguished  from  un- 
surveyed land  or  "scrap"  land.  For  many  years  public 
school  land,  for  sale  purposes,  has  been  classed  as  surveyed 
land  sold  on  competitive  bidding,  and  unsurveyed,  or  scrap 
land,  sold  at  the  price  fixed  by  the  Commissioner  to  the 
one  first  applying  for  it.  Land  of  the  first  class  has  already 
been  surveyed  when  the  initial  step  in  its  acquisition  is  taken 
by  the  applicant  and  there  is  no  necessity  for  the  applicant 
to  cause  a  survey  of  the  land  to  be  made,  but  in  purchasing 
land  of  the  latter  class  it  is  necessary  that  the  applicant 
have  it  surveyed  for  the  purpose  of  indentification  and  de- 
scription  and  then  file  an  application   to   purchase.     The 


Mineral  Rights  in  State  Lands  23 

difference  between  these  two  classes  of  land  is  discussed 
and  some  of  the  authorities  bearing  upon  the  subject  are 
cited  in  an  opinion  of  the  Attorney  General  to  the  Commis- 
sioner of  the  Land  Office  written  October  7,  1915.  (See 
Opinions,  Attorney  General,  1914-16,  p.  568.)  The  Min- 
eral Act  of  1913,  without  defining  surveyed  land  or  unsur- 
veyed  land,  provided  that  an  application  for  a  permit  on 
unsurveyed  land  should  be  filed  with  the  county  clerk  and 
an  application  for  ])ermit  on  unsurveyed  land  with  the 
county  surveyor.  In  the  case  of  Sibley  vs.  Robison  (110 
Tex.  1,  212  S.  W.  932)  the  Supreme  Court  approved  the 
action  of  the  Commissioner  of  the  Land  Office  in  treating 
as  surveyed  land  within  the  meaning  of  that  Act  any  area 
which  had  been  theretofore  lawfully  surveyed  under  that 
Act,  with  the  field  notes  approved  by  the  Commissioner 
and  filed  in  the  General  Land  Office.  The  Mineral  Act  of 
1917  (Acts  Regular  Session,  Thirty-sixth  Legislature,  p. 
164)  defines  surveyed  lands  under  its  terms  as  "all  tracts 
for  which  there  are  approved  field  notes  on  file  in  the  Gen- 
eral Land  Office." 

The  Attorney  General,  in  an  opinion  to  the  Commis- 
sioner of  the  Land  Office,  dated  September  26th,  1919,  ad- 
vised him  that  land  should  be  regarded  as  public  school 
land  and  sold  as  such  in  all  instances  where  the  land  had 
actually  been  surveyed  and  field  notes  filed  in  the  General 
Land  Office,  regardless  of  whether  the  survey  was  made 
for  the  purpose  of  purchasing  the  surface  or  for  the  pur- 
pose of  leasing  or  purchasing  the  minerals  in  the  land. 

Every  tract  of  public  school  land  which  is  sold  may 
be  said,  in  a  sense,  to  be  surveyed  land  when  sold,  for  the 
reason  that  even  scrap  land  must  be  surveyed  before  the 
application  is  filed,  and  the  sale  dates  from  the  filing  of 
the  application.  The  sale  is  made,  however,  in  such  case, 
under  the  law  regulating  the  sale  of  unsurveyed  or  scrap 
land,  and  at  the  time  when  the  intending  purchaser  takes 
the  first  step  leading  to  the  acquisition  of  the  land  by  filing 
his  letter  of  inquiry  with  the  Commissioner  (under  the  for- 
mer law  by  filing  his  application  for  a  survey  with  the 
county  surveyor),  the  land  is  in  fact,  unsurveyed  land.  The 
writer  is  inclined  to  believe,  therefore,  that,  in  view  of  the 
foregoing  authorities  and  Acts  of  the  Legislature  and  from 


24  Oil  and  Gas  Laws 

a  practical  viewpoint,  surveyed  public  school  or  asylum 
land,  within  the  meaning  of  the  relinquishment  Act  of  1919, 
is  such  land  as  has  actually  been  surveyed  and  field  notes 
of  which  have  been  approved  and  filed  in  the  General  Land 
Office  prior  to  the  time  the  purchaser  takes  the  initial  step 
in  acquiring  the  land,  that  is,  it  is  land  purchased  under 
the  Sales  Act  relating  to  surveyed  public  school  and  asylum 
land  and  which  has  actually  been  surveyed  and  the  field 
notes  of  which  have  been  approved  and  filed  in  the  General 
Land  Ofifice  before  the  application  to  purchase  is  filed  in 
that  office. 

Uusurveyed  public  school  land  within  the  Act  of  July 
23,  1919  (Acts  Second  Called  Session,  Thirty-sixth  Legis- 
lature, p.  51),  is,  in  our  opinion,  all  public  school  land  other 
than  surveyed  public  school  land,  or  all  public  school  land 
which  has  not  been  actually  surveyed  or  for  which  there 
are  no  approved  field  notes  on  file  in  the  General  Land  Of- 
fice. If  at  the  time  one  desires  to  take  the  initial  step  to 
secure  the  oil  and  gas  rights  in  the  land,  it  is  unsurveyed 
under  the  foregoing  definition,  then  such  rights  can  be  se- 
cured only  by  competitive  bidding  under  the  Act  of  July 
23,  1919.  If,  on  the  contrary,  at  the  time  one  desires  to 
secure  the  oil  and  gas  rights,  the  school  land  is  surveyed, 
that  is,  there  are  approved  field  notes  for  it  on  file  in  the 
Land  Office,  such  rights  may  be  acquired  by  taking  the 
steps  prescribed  by  the  Mineral  Act  of  1917.  The  fore- 
going statements  as  to  actual  surveys  made  and  the  filing 
of  field  notes  have  reference,  of  course,  to  surveys  made 
by  authorized  officers  and  made  under  lawful  authority. 
An  unauthorized  survey  could  not  change  the  status  of  an 
area  from  unsurveyed  into  surveyed  land.  See  Landry 
vs.  Robison  (110  Tex.  295,  219  S.  W.  819). 

The  Commissioner  of  the  Land  Office  has  tentatively 
construed  the  two  Mineral  Acts  of  1919  as  classing  public 
school  land  as  unsurveyed  or  surveyed  land  according  to 
its  status  in  that  respect  at  the  very  time  when  the  first  of 
the  two  Acts  of  1919  became  eflfective,  that  is,  he  has  ruled 
that  land  which  was  not  actually  surveyed  or  for  which 
no  field  notes  had  been  filed  and  approved  in  the  Land 
Office  prior  to  July  23,  1919,  is  unsurveyed  school  land 
within  the  meaning  of  the  Act  approved  on  that  date  re- 
lating to  the  acquisition  of  oil  and  gas  rights  in  islands, 


Mineral  Rights  in  State  Lands  25 

tide  water  lands,  unsurveyed  lands,  etc.,  and  that  even  if 
such  land  is  after  July  23rd,  1919,  actually  surveyed  and 
field  notes  approved  and  filed  in  the  Land  Office  and  is  then 
sold  as  surveyed  land,  the  purchaser  acquires  no  interest 
in  the  oil  and  gas  under  the  relinquishment  Act,  but  the 
rights  to  the  same  must  be  acquired  by  competitive  bidding 
under  the  Act  of  July  23,  1919.     In  other  words,  his  con- 
struction is  that  the  status  of  the  land  as  surveyed  or  un- 
surveyed land   for  the  purpose  of  the  two  Acts  of   1919 
must  be  determined  as  of  July  23rd,  1919.     The  Commis- 
sioner's construction  may  be  correct,  but  it  seems  to  the 
writer  that  such  construction  is  calculated  to  work  incon- 
sistent   resutls.     For   example,    one    desiring   to   purchase 
after  July  23rd,  1919,  a  tract  of  unsurveyed  school  land, 
files  his  letter  of  inquiry,  causes  the  survey  to  be  made,  and 
files  the  field  notes  in  the  General  Land  Office.     The  Com- 
missioner classifies  and  values  the  land,  but  for  some  reason 
the  applicant  fails  to  file  his  application  to  purchase  within 
sixty  days.     Under  the  law  the  Commissioner  places  the 
land  on  the  market  and  sells  it  as  surveyed  land.     Accord- 
ing to  the  ruling  above  referred  to,  the  purchaser  would  get 
no  interest  in  the  oil  and  gas  by  virtue  of  the  relinquish- 
ment Act,  because  the  land  was  unsurveyed  on  July  23, 
1919;  and  yet  the  purchaser  bought  it  as  surveyed  school 
land  and  no  other  person  had  therefore  acquired  any  right 
in  the  oil  and  gas,  and  the  relinquishment  Act  expressly 
provides  that  fifteen-sixteenths  of  the  oil  and  gas  are  re- 
leased in  all  surveyed  school  land  thereafter  sold.     Why 
should  not  this  purchaser  of  surveyed  school  land  acquire 
an  interest  in  the  oil  and  gas  just  as  do  all  other  purchasers 
of  surveyed  school  land,  and  why  should  an  intending  pur- 
chaser of  surveyed  school  land  from  the  State  be  required 
to  ascertain  its  status  as  surveyed  or  imsurveyed  land  on 
July  23,  1919,  rather  than  at  the  very  time  he  applies  to  buy 
it,  in  order  to  know  whether  he  as  a  purchaser  will  acquire 
by  his  purchase  an  interest  in  the  oil  and  gas  ? 

(2)     Act  op  July  23,  1919,  Relating  to  Oil  and  Gas  in 

Unsurveyed  School  Land,  Islands,  Tide 

Water  Lands,  etc. 

This  Act,  which  went  into  effect  July  23,  1919   (Acts 

Second   Called   Session,   Thirty-sixth   Legislature,   p.    51), 


26  Oil  and  Gas  Laws 

expressly  repealed  so  much  of  the  Act  of  1917  as  related 
to  the  leasing  of  areas  included  in  the  new  Act.  It  served, 
therefore,  as  far  as  future  acquisition  from  the  State  of 
oil  and  gas  is  concerned,  to  remove  the  areas  designated  in 
the  new  Act  from  the  operation  of  the  mineral  law  of  1917 
and  to  prescribe  a  new  method  for  the  acquisition  of  the 
oil  and  gas  in  such  areas,  the  distinguishing  feature  being 
that  under  the  new  law  these  rights  are  acquired  by  com- 
petitive bidding.  It  is  made  the  duty  of  the  Commissioner 
of  the  Land  Office  to  advertise  the  time  when  any  area  in- 
cluded in  the  Act  shall  be  subject  to  lease  and  after  the 
advertisement  make  the  lease  to  the  applicant  who,  in  addi- 
tion to  a  one-eighth  royalty  of  the  gross  production  and  an- 
nual rents,  will  pay  the  largest  sum  for  the  lease.  The 
leases  are  made  for  terms  not  exceeding  twenty-five  years, 
it  being  provided,  however,  that  if  production  is  not  secured 
in  ten  years  the  lease  shall  terminate  and  the  area  again 
be  subject  to  lease  as  in  the  first  instance. 

(a)  Unsurveyed  School  Land. 
The  meaning  of  this  term  as  used  in  the  Act  of  July 
23rd,  1919,  has  already  been  discussed.  Before  the  enact- 
ment of  the  new  law,  rights  to  the  oil  and  gas  in  unsurveyed 
school  land  were  acquired  by  filing  applications  under  the 
Mineral  Act  of  1917  (Acts  Regular  Session,  Thirty-fifth 
Legislature,  p.  158).  Permits  were  issued  to  the  first  appli- 
cant who  took  the  steps  prescribed  by  the  Act.  Under  that 
Act  many  permits  have  been  issued,  including  permits  on 
so-called  vacancies,  for  land  not  included  in  the  bounds  of 
any  survey  is  a  part  of  the  public  domain  which  was  set 
apart  to  the  school  fund  by  the  Act  of  1900.  The  issuance 
of  such  permits  involves  the  determination  of  questions  of 
boundary. 

(b)  Islands,  Submerged  Lands,  etc.,  O-mned  by  the  State 
Within  Tide  Water  Limits. 
The  areas  included  in  the  Act  of  July  23,  1919,  in  addi- 
tion to  unsurveyed  public  school  land,  are  all  islands,  salt- 
water lakes,  bays,  inlets,  marshes  and  reefs  owned  by  the 
State  within  tide  water  limits,  and  that  portion  of  the  Gulf 
of  Mexico  within  the  jurisdiction  of  Texas.  The  Act 
properly  provides  that  leases  be  given  only  upon  such  areas 


Mineral  Rights  in  State  I^ands  27 

as  are  owned  by  the  State.  The  areas  enumerated  may  be 
the  subject  of  express  grant  by  Act  of  the  Legislature  or 
under  express  legislative  authority,  but  the  policy  of  the 
State,  as  well  as  of  the  Republic,  has  been  to  reserve  from 
sate,  location  and  grant,  the  islands  along  the  coast,  as  well 
as  the  land  below  the  line  of  ordinary  high  tide.  Such 
islands  and  tide  lands  have  not  been  subject  to  location 
under  certificates  or  to  sale  as  school  land  and  have  been 
reserved  to  the  State  for  the  use  of  the  general  public,  ex- 
cept in  the  few  instances  where  they  have  been  the  subjects 
of  express  grant.  See:  State  vs.  Delesdenier  (7  Tex.  76)  ; 
Roberts  vs.  Terrell  (101  Tex.  577,  110  S.  W.  733)  ;  Texas 
Channel  and  Dock  Company  vs.  State  (104  Tex.  168,  135 
Tex.  522)  ;  State  vs.  Jadwin,  (85  S.  W.  490)  ;  De  Merritt 
vs.  Robison  (102  Tex  358,  116  S.  W.  796)  ;  Baylor  vs.  Tit- 
tleback  (49  S.  W.  720)  ;  Hynes  vs.  Packard,  (92  Tex.  44, 
45  S.  W.  562)  ;  Roseborough  vs.  Picton  (34  S.  W.  791)  ; 
Galveston  vs.  Menard  (23  Tex.  349)  ;  Galveston,  etc.,  Co. 
vs.  Heidenheimer,  (63  Tex.  559)  ;  Landry  vs.  Robison,  (110 
Tex.  295,219  S.  W.  819). 

The  line  along  the  shore  between  public  and  private 
ownership  is,  according  to  the  common  law,  the  line  of  ordi- 
nary high  tide.  This  is  more  favorable  to  private  owner- 
ship than  the  civil  law,  under  which  the  line  was  at  highest 
tide.  It  is  not  decided  in  the  cases  above  cited  whether 
the  rule  of  the  common  law  or  the  rule  of  the  civil  law  is  in 
effect  in  this  State.  It  may  be  that  in  front  of  Spanish 
and  Mexican  grants  the  line  of  State  ownership  extends 
as  far  inland  as  highest  tide,  but  for  the  sake  of  uniformity 
and  in  order  to  give  private  owners  the  benefit  of  the  doubt, 
it  is  generally  conceded  that  the  division  line  is  at  ordinary 
high  tide. 

While  it  is  settled  that  submerged  land  along  the  coast 
may  be  the  subject  of  express  grant,  if  the  intention  to 
include  such  land  clearly  appears,  the  contention  was  made 
in  a  petition  for  mandamus  filed  in  the  Supreme  Court  in 
November,  1917,  in  a  case  entitled  Sparks  vs.  Robison,  No. 
3044,  that  the  title  to  the  bed  of  a  salt  water  lake  within  the 
ebb  and  flow  of  the  tide  did  not  pass  under  a  grant  made 
by  Mexican  officials,  by  reason  merely  of  the  inclusion  of 
the  lake  within  the  metes  and  bounds  of  the  tract  of  land 


28  Oil  and  Gas  Laws 

granted,  there  being  no  express  legislative  authority  for  the 
granting  of  such  submerged  land.  The  case  presents  an 
interesting  question,  but  it  was  dismissed  on  motion  of  the 
relator.  The  action  of  the  Supreme  Court  in  granting  the 
motion  for  leave  to  file  the  petition  indicated  the  Court's 
belief  that  there  was  some  merit  in  the  relator's  contention. 

(3)  The  Mineral  Act  oe  1917. 
The  two  Acts  of  1919  repealed  the  Mineral  Act  of  1917 
(Acts  Thirty-fifth  Legislature,  Regular  Session,  p.  158) 
only  in  part.  The  Act  of  July  23rd,  1919,  expressly  re- 
peals the  Act  of  1917  in  so  far  as  it  includes  and  provides 
for  the  leasing  of  the  areas  specified  in  the  new  Act.  The 
relinquishment  Act  of  1919  repeals  the  Act  of  1917  only 
to  the  extent  that  it  conflicts  with  it.  Oil  and  gas  rights 
in  the  following  areas  belonging  to  the  State  may  still  be 
acquired  under  the  terms  of  the  Act  of  1917:  (a)  River 
Beds  and  Channels,  (b)  Fresh  Water  Lakes,  (c)  Univer- 
sity Land,  (d)  Unsold  Surveyed  Public  School  and  Asylum 
Land,  and  (b)  possibly.  Land  Sold  as  Uusurveyed  School 
Land  with  Reservation  of  the  Minerals.  The  foregoing 
areas,  together  with  those  enumerated  in  the  Act  of  July 
23rd,  1919,  and  surveyed  school  and  asylum  land  sold  with 
reservation  of  the  minerals,  now  within  the  terms  of  the 
relinquishment  Act,  are  all  of  the  areas  enumerated  in  the 
Act  of  1917.  No  account  need  be  taken  of  islands,  marshes, 
etc.,  not  within  tide  water  limits,  for  they  are  either  sur- 
veyed or  unsurveyed  school  lands. 

(a)     River  Beds  and  Channels. 

River  beds  do  not  come  within  the  meaning  of  such 
general  language  as  "public  school  land,"  or  "public  lands," 
and  on  account  of  the  principles  of  civil  and  common  law 
reserving  for  public  use  the  soil  under  navigable  waters, 
river  beds  are  not  subject  to  exploration  under  the  mineral 
Acts  unless  expressly  declared  so  to  be.  See  Landry  vs. 
Robison  (110  Texas  295,  219  S.  W.  819).  Oil  and  gas 
rights  in  river  beds  belonging  to  the  State  are  not  affected, 
therefore,  by  either  of  the  Mineral  Acts  of  1919,  but  can  be 
acquired  only  under  the  Act  of  1917  which  expressly  ap- 
plies to  river  beds. 

The  ownership  of  the  beds  of  non-navigable  streams 


Mineral  Rights  in  State  Lands  29 

depends  upon  the  language  of  the  grant  of  the  adjoining 
land  or  of  the  field  notes  by  which  the  land  granted  is 
described,  for  while  the  policy  has  been  to  permit  private 
ownership  of  the  beds  of  non-navigable  streams,  and  the 
rule  is  that  when  a  tract  of  land  is  bounded  by  a  non- 
navigable  stream  the  boundary  line  ordinarily  extends  to 
the  center  of  the  stream,  if  it  clearly  appears  from  the  lan- 
guage of  the  grant,  or  its  field  notes,  that  the  intention  was 
to  fix  the  boundar}'  at  the  bank  or  at  the  water's  edge,  the 
bed  of  the  stream,  even  though  non-navigable,  will  not  be 
included  in  the  grant.  See  Button  vs.  Vierling  (152  S.  W. 
450). 

Through  the  operation  of  a  surveying  statute  in  force 
since  1837  (now  Article  5338,  Revised  Statutes  1911),  as 
well  as  in  pursuance  of  a  settled  policy  to  reserve  the  beds 
of  navigable  waters  for  the  use  of  the  public,  the  beds  of 
navigable  streams  in  Texas  have  been  reserved  by  the 
State.     The  language  of  the  statute  is : 

"All  lands  surveyed  for  individuals,  lying  on  naviga- 
ble water  courses,  shall  front  one-half  of  the  square  on  the 
water  course  and  the  line  running  at  right  angles  with  the 
general  course  of  the  stream,  if  circumstances  of  lines  pre- 
viously surveyed  under  the  laws  will  permit ;  and  all 
streams,  so  far  as  they  retain  an  average  width  of  thirty 
feet,  shall  be  considered  navigable  streams  within  the  mean- 
ing hereof,  and  they  shall  not  be  crossed  by  the  lines  of  any 
survey." 

In  the  case  of  Austin  vs.  Hall  (93  Tex.  591,  57  S.  W. 
563)  attention  is  called  to  the  fact  that  the  first  portion  of 
this  article,  which  specifies  the  manner  in  which  surveys 
shall  be  made  on  navigable  water  courses,  relates  to  waters 
which  are  navigable  "according  to  the  general  rule  of  de- 
cisions on  that  subject,"  and  discloses  a  purpose  to  reserve 
to  the  State  the  title  to  the  beds  of  all  streams  navigable 
according  to  the  general  rule  of  decisions,  and  that  the 
second  portion  of  the  article  arbitrarily  classifies  as  naviga- 
ble also  those  stream^s  which  retain  an  average  width  of 
thirty  feet.  The  general  rule  of  decisions  above  referred  to 
in  the  United  States  is  that  those  streams  are  navigable  and 
public  which  are  navigable  in  fact  or  which  have  the  ca- 
pacity of  use  by  the  public  for  the  purpose  of  transporta- 


30  Oil  and  Gas  lyAws 

tion  and  commerce,  as  well  as  those  which  are  within  the 
ebb  and  flow  of  the  tide.  See :  Bigham  Bros.  vs.  Pt.  Ar- 
thur Canal  Co.  (126  S.  W.  324);  Burr's  Ferry  vs.  Allen 
(149  S.  W.  358,  164  S.  W.  878);  Orange  Lbr.  Co.  vs. 
Thompson  (113  S.  W.  563,  126  S.  W.  604)  ;  Petty  vs.  San 
Antonio  (181  S.  W.  224).  As  a  result  of  this  statute,  as 
so  construed,  the  State  has  reserved  the  beds  of  streams 
navigable  in  fact  and  also  of  all  streams  "so  far  as  they 
retain  an  average  width  of  thirty  feet."  It  is  doubtless 
sufficient  to  test  the  navigability  of  a  stream  by  the  rule 
of  thirty  feet,  for  it  is  not  likely  that  many  streams,  if  any, 
are  navigable  in  fact  which  are  less  than  thirty  feet  wide. 

By  none  of  the  decisions  of  our  appellate  courts,  unless 
it  is  decided  by  the  case  of  King  vs.  Schaff  (204  S.  W. 
1039),  has  the  location  of  the  line  between  public  and  pri- 
vate ownership  along  navigable  streams  been  directly  de- 
termined. The  question  is  involved  in  some  pending  liti- 
gation with  respect  to  lands  in  Wichita  County  along  Red 
River. 

In  Austin  vs.  Hall  (93  Tex.  591,  57  S.  W.  563)  Judge 
Brown  says  that  the  grant  of  a  tract  of  land  upon  a  naviga- 
ble stream,  whether  navigable  in  fact  or  by  virtue  of  the 
statute,  gives  title  to  the  grantee  "only  to  the  water  line 
of  such  stream."  He  does  not  state,  however,  whether  such 
line  is  at  high  water  mark  or  low  water  mark.  In  Bun- 
nell vs.  Sugg  (135  S.  W.  701),  the  Court  while  holding  that 
it  was  unnecessary  to  determine  the  question,  seemed  in- 
clined to  the  view  that  the  navigability  of  a  stream  within 
the  meaning  of  the  statute  was  to  be  determined  by  the 
average  width  of  the  water  in  ordinary  seasons. 

Careful  consideration  was  given  to  this  question  by 
Judge  Buck  in  the  case  of  King  vs.  Schaff  (204  S.  W. 
1039),  and  he  approved  the  line  of  authorities  taking  the 
middle  ground  and  holding  that  the  bed  of  the  river  re- 
served by  the  State  is  "that  portion  of  its  soil  which  is  al- 
ternately covered  and  left  bare  as  there  may  be  an  in- 
crease or  diminution  in  the  supply  of  water,  and  which 
is  adequate  to  contain  it  at  its  average  and  mean  stage 
during  the  entire  year  without  reference  to  the  extraordi- 
nary freshets  of  the  winter  or  spring,  or  the  extreme 
drouths  of  the  summer  or  autumn." 


Mineral  Rights  in  State  Lands  31 

Inquiry  as  to  the  navigability  of  a  stream  for  the  pur- 
pose of  ascertaining  the  ownership  of  its  bed  must  be  di- 
rected, of  course,  to  the  time  the  land  on  the  bank  was  ap- 
propriated from  the  public  domain.  The  fact  that  the  field 
notes  of  the  adjoining  survey  show  a  purpose  not  to  include 
the  bed  of  the  stream,  tends  strongly  to  prove  that  when 
the  land  was  appropriated  the  stream  was  thirty  feet  or 
more  in  width  or  navigable  in  fact,  and  that  the  bed  was 
reserved  to  the  State ;  and  conversely  the  fact  that  the 
field  notes  call  for  the  survey  to  cross  the  stream  is  per- 
suasive that  the  stream  was  not  navigable.  See:  King  vs. 
Schaff  (204  S.  W.  1039). 

There  are  instances,  however,  where  a  survey  has  act- 
ually been  made  and  the  land  patented  across  a  stream  very 
obviously  navigable.  It  is  held  in  Bunnell  vs.  Sugg  (135 
S.  W.  701)  that  such  fact  does  not  render  the  survey  or 
patent  void,  and  that  the  patent  cannot  be  attacked  on  that 
account  by  one  claiming  under  a  junior  grant.  The  title 
to  the  river  bed,  however,  was  not  involved  in  that  case. 
While  it  was  not  necessary  to  the  decision  of  the  case,  the 
opinion  was  expressed  in  the  case  of  King  vs.  Schaff  (204 
S.  W.  1039.  1041)  that  a  patent  including  within  the  land 
described  in  its  field  notes  a  part  of  the  bed  of  a  navigable 
stream,  would  be  at  most  voidable  at  the  instance  of  the 
State,  and  as  to  third  parties  would  convey  title  to  the  bed 
of  the  stream.  The  Supreme  Court,  in  the  case  of  New 
York  and  Texas  Land  and  Cattle  Company  vs.  Thomson 
(83  Tex.  169,  17  S.  W.  920),  held  that  the  location  of  a 
certificate  across  a  navigable  stream  was  illegal  and  that 
such  location  would  not  protect  the  land  from  subsequent 
location  by  a  valid  certificate.  See  also  the  recent  opinion 
of  the  Supreme  Court  in  the  case  of  Landry  vs.  Robison 
(110  Tex.  295,  219  S.  W.  819),  citing  with  approval  the 
case  last  above  referred  to  and  discussing  the  principles  of 
the  civil  law  and  the  common  law  reserving  for  the  benefit 
of  the  public  the  soil  under  navigable  waters. 

The  Commissioner  of  the  Land  Office  has  ruled  that 
the  beds  of  navigable  streams  which  are  included  within  the 
meets  and  bounds  of  patented  lands,  are  not  subject  to 
prospecting  under  the  Mineral  Act.  This  ruling  is  in 
part  sustained  by  the  dicta  in  the  cases  above  referred  to, 


32  Oil  and  Gas  Laws 

and,  it  seems,  is  sustained  by  the  reasoning  in  the  recent 
opinion  of  the  Supreme  Court  in  the  case  of  Fitzgerald  vs. 
Robison  (110  Tex.  468,  220  S.  W.  768). 

The  rules  of  accretion  and  reliction,  as  well  as  the  rules 
of  avulsion,  have  been  recognized  by  the  Texas  courts  and 
applied  in  determining  the  line  of  ownership  upon  navi- 
gable streams.  See  Denny  vs.  Cotton  (22  S.  W.  122)  ;  Goar 
vs.  Rosenberg  (115  S.  W.  653);  Siddal  vs.  Hudson  (201 
S.W.  1029,  206  S.  W.  381). 

Many  of  the  questions  above  considered  as  to  the  own- 
ership of  beds  of  navigable  streams  are  discussed  in  an 
opinion  of  the  Attorney  General  to  M.  M.  Burch,  written 
December  1st,  1915  (Attorney  General's  Report  1914-16, 
p.  811). 

That  the  line  between  public  and  private  ownership 
along  a  navigable  stream,  where  the  field  notes  of  the  sur- 
vey make  the  river  bank  its  boundary,  is  at  the  bank,  whi.'h 
confines  the  waters  of  the  stream  in  time  of  ordinary  high 
water,  rather  than  at  a  bluff  remote  from  the  channel, 
which  confines  the  water  in  case  of  unusual  floods,  is  held 
in  an  opinion  of  the  Attorney  General  to  the  Commissioner 
of  the  Land  Office  written  September  2nd,  1918,  with  ref- 
erence to  Red  River.  (Opinion  No.  1946,  Attorney  Gen- 
eral's Report,  1916-18,  p.  352.)  Many  of  the  questions 
above  referred  to  are  involved  in  the  suit  pending  in  the 
Supreme  Court  of  the  United  States  between  Texas  and 
Oklahoma  as  to  the  boundary  line  along  Red  River. 

(b)  Fresh  Water  Lakes. 
The  beds  of  small  non-navigable  lakes  have  very  prop- 
erly been  treated  as  land  and  included  within  the  bounds 
of  grants,  with  the  result  that  they  do  not  belong  to  the 
State  and  are  not  within  the  Mineral  Act  of  1917.  There 
are  some  instances  in  which  lakes  of  considerable  size  have 
been  included  within  the  bounds  of  granted  lands.  The 
matter  in  controversy  in  the  case  of  Lakeside  Irrigation 
Co.  vs.  Kirby  (166  S.  W.  715)  was  the  right  to  take  water 
from  Eagle  Lake,  which  contained  an  area  of  1250  acres 
and  was  included  within  the  metes  and  bounds  of  two  sur- 
veys. It  was  assumed  by  the  Court  that  the  bed  of  the 
lake  belonged  to  the  owners  of  the  surveys.     The  Court, 


Mineral  Rights  in  State  Lands  33 

in  the  case  of  Welder  vs.  State  (196  S.  W.  868),  in  which 
was  involved  the  title  to  the  bed  of  Green  Lake  in  Cal- 
houn County,  covering  an  area  of  about  five  thousand  acres, 
was  careful  to  state  that  the  issue  in  the  case  was  not 
whether  the  State  could  grant  title  to  land  in  the  bed  of 
a  natural  permanent  fresh  water  lake,  but  whether  it  had 
in  fact  done  it  as  to  Green  Lake.  Whatever  may  be  the 
correct  rule  as  to  the  power  of  the  officers  of  the  State 
to  include  the  bed  of  a  fresh  water  lake  of  a  considerable 
size  in  a  grant,  it  seems  to  be  settled  by  the  opinion  of  the 
Supreme  Court  in  the  Fitzgerald  case,  that  if  the  bed  of 
the  lake  has  been  patented  by  the  State,  the  Commissioner 
of  the  Land  Office  should  not  disregard  the  patent  and 
issue  a  permit  upon  the  lake  bed. 

In  the  Welder  case  (196  S.  W.  868)  it  is  held  that  the 
rule  which  gives  to  grantees  of  land,  bounded  by  a  non- 
navigable  stream,  title  to  the  bed  of  the  stream,  has  no  ap- 
plication to  lands  bordering  upon  a  non-navigable  lake  of 
large  area,  and  that  the  bed  of  such  lake  belongs  to  the 
State.  It  is  further  held  in  that  case  that  ownership  of 
surveys  bordering  upon  a  navigable  fresh  water  lake  car- 
ries with  it  no  ownership  of  the  bed  of  the  lake,  and  fur- 
ther that  a  lake  large  and  deep  enough  to  be  useful  to  the 
public  for  boating  and  fishing,  as  well  as  those  which  have 
a  capacity  for  commercial  purposes,  should  be  held  to  be 
navigable,  and,  therefore,  public  and  not  private  property, 
(c)      University  Land. 

The  two  Mineral  Acts  of  1919  make  no  reference  to 
university  land,  except  that  the  relinquishment  Act  provides 
in  its  17th  section  that  the  provisions  of  the  Act  with  ref- 
erence to  combinations  of  permits  and  extensions  of  time 
for  beginning  development  and  time  for  development  shall 
apply  to  permits  issued,  or  to  be  issued,  upon  university 
land.  The  Attorney  General  in  an  opinion  to  the  Commis- 
sioner of  the  Land  Office,  held  that  only  in  these  respects 
were  university  lands  affected  by  the  relinquishment  Act. 
(Attorney  General's  Report  1918-20,  p.  266.) 

The  oil  and  gas  rights  in  university  lands  are  still  ac- 
quired under  the  Mineral  Act  of  1917,  and  the  terms  and 
conditions  of  their  acquisition,  with  the  exceptions  above 
mentioned,  are  regulated  by  the  provisions  of  that  Act. 


34  Oil  and  Gas  Laws 

In  an  opinion  to  Commissioner  of  the  Land  Office  writ- 
ten June  2nd,  1919  (Opinion  No  2079,  Bk.  53,  p.  65,  Attor- 
ney General's  Report  1918-20,  p.  349),  the  Attorney  Gen- 
eral advised  him  that  the  one  million  acres  of  land,  which 
had  been  set  apart  to  the  university  by  the  Act  of  1883, 
and  which  had  been  surveyed  into  large  blocks,  the  ex- 
terior lines  being  actually  surveyed  and  the  interior  platted 
into  sections  in  the  Land  Office,  were  not  surveyed  lands, 
as  defined  in  the  Mineral  Act  of  1917,  but  were  unsur- 
veyed,  and  that  applications  for  permits  upon  such  lands 
should  be  filed  with  the  county  surveyor. 

The  Legislature  by  an  Act  approved  October  2,  1920 
(Acts  Fourth  Called  Session  Thirty-sixth  Legislature,  p.  5), 
authorized  the  grouping  into  development  areas  of  certain 
permits  theretofore  issued  on  university  lands,  and  ex- 
tended such  grouped  permits  for  a  period  of  five  years 
from  the  date  of  the  permit  last  issued  on  land  in  such 
area. 

(d)  Unsold  Surveyed  Public  School  and  Asylum  Land. 
Rights  to   the  oil   and  gas   in   unsold   surveyed  public 

school  and  asylum  land  may  still  be  acquired  under  the 
Mineral  Act  of  1917.  When  such  rights  are  acquired,  a 
subsequent  purchaser  of  the  land,  according  to  the  express 
terms  of  Section  11  of  the  relinquishment  Act  of  1919, 
secures  no  right  to  oil  and  gas  in  the  land  through  his  pur- 
chase, but  upon  termination  of  such  rights  according  to 
the. terms  of  the  law  under  which  they  were  obtained,  then 
the  owner  of  the  surface  becomes  the  owner  of  fifteen- 
sixteenths  of  the  oil  and  gas  under  the  relinquishment  Act. 

(e)  Land  Sold  as  Unsurveyed  School  Land  With  Reser- 

vation of  the  Minerals. 
It  has  been  shown  that  when  land  is  classed  as  mineral 
and  sold  under  the  scrap  Act,  the  purchaser  of  the  land 
obtains  no  interest  in  the  minerals.  If  we  are  correct 
in  the  position  which  we  have  taken  to  the  effect  that  land 
so  sold  is  thereafter  to  be  treated,  for  the  purpose  of  the 
mineral  laws,  as  surveyed  land  by  reason  of  the  fact  that 
it  was  actually  surveyed  and  field  notes  were  filed  and  ap- 
proved before  the  sale,  then  the  first  person  who,  after  the 
sale  is  made,  or  who  after  the  field  notes  are  filed  and  ap- 


Mineral  Rights  in  State  Lands  35 

proved,  files  application  for  a  permit  with  the  county  clerk 
and  takes  the  other  steps  prescribed  by  the  Act  of  1917,  is 
entitled  to  a  permit.  If  the  Commissioner's  ruling  that  the 
status  as  i^urveyed,  or  unsurveyed,  land  must  be  determined 
as  of  July  23rd,  1919,  is  correct,  and  the  land  had  not  been 
surveyed  and  field  notes  filed  and  approved  by  that  date, 
then  such  land  is  unsurveyed  land  under  the  mineral  laws 
and  oil  and  gas  rights  must  be  acquired  by  competitive  bidd- 
ing under  the  Act  of  July  23rd,  1919. 

III.  EXCESS  WITHIN  SOLD  SURVEYED 
SCHOOL  LAND. 

The  general  rule  as  to  excess  within  a  survey  of  land 
acquired  from  the  State  is  such  excess  may  be  held  by  the 
purchaser  of  the  survey  until  the  State  by  direct  action 
causes  the  excess  to  be  partitioned  or  otherwise  set  apart 
to  it.  See:  Willoughby  vs.  Long  (96  Tex.  194,  71  S.  W. 
545) ;  Wright  vs.  Gale  (104  Tex.  450,  140  S.  W.  91,  143 
S.  W.  141).  This  is  the  theory  of  the  State's  suit  for  the 
recovery  of  the  excess  within  the  Capitol  Leagues  and  is 
the  basis  of  the  judgment  rendered  in  its  favor  on  Oct.  15, 
1920,  for  the  setting  apart  to  the  State  by  partition  of  55,000 
acres  out  of  the  Capital  Leagues.  The  case  is  now  pending 
on  appeal  in  the  Court  of  Appeals  at  Austin. 

It  seems  to  be  settled  by  the  two  Supreme  Court  de- 
cisions last  above  cited  that  a  purchaser  of  a  whole  section 
of  surveyed  school  land  before  the  issuance  of  a  patent  to 
him  has  the  option,  under  Articles  5396  to  5400,  Revised 
Statutes,  1911,  for  a  period  of  six  months  after  the  existence 
of  the  excess  is  disclosed  by  a  resurvey,  of  purchasing  the 
excess  at  the  price  and  upon  the  terms  of  the  original  pur- 
chase, and  that  as  against  such  right  and  before  the  excess 
is  segregated  and  set  apart  to  the  State,  a  third  person  can- 
not acquire  a  right  in  the  excess  land  (See  also  Standefer 
vs.  Vaughn,  219  S.  W.  484,  491).  Many  purchases  have 
been  made  under  the  Sales  Act  of  1895,  and  its  amend- 
ments, of  quarters  and  other  sub-divisions  of  sections  of 
surveyed  school  land  containing  undisclosed  excesses.  That 
act  provided  that  sales  should  be  of  entire  sections  or  of 
multiples  of  eighty  acres  out  of  such  sections,  and  it  has 
been  seriously  contended  that  a  purchaser  of  such  subdi- 


36  Oil  and  Gas  Laws 

vision  of  a  section  lias  no  right  to  purchase  the  excess  sub- 
sequently disclosed  in  such  subdivision.  The  Supreme 
Court,  hov^'ever,  in  the  case  of  Anderson  vs.  Robison  et  al., 
decided  March  23,  1921,  held  that  the  purchaser  of  such 
subdivision  has  the  prior  right  to  purchase  the  excess,  and 
that  as  long  as  such  prior  right  exists,  another  person  cannot 
fix  a  right  in  the  excess  land  by  filing  an  application  for  a 
mineral  permit. 

IV.     SCHOOL  LAND  RE-PURCHASED  UNDER 
THE  RELIEF  ACT  OF  1913. 

The  Thirty-third  Legislature  passed  an  act  giving  to  the 
owners  of  school  land,  purchased  within  certain  dates  and 
forfeited  for  non-payment  of  interest  accrued  before  the 
passage  of  the  act,  a  preference  right  to  repurchase  the 
land  within  a  certain  time  after  the  forfeiture.  (Acts 
Thirty-third  Legislature,  Regular  Session,  p.  336,  Articles 
5423a-5423f,  Vernon's  Sayless'  Civil  Statutes.)  The  act 
was  held  to  be  constitutional  by  the  Supreme  Court  in  the 
case  of  Judkins  vs.  Robison,  109  Texas  6  (160  S.  W.  955). 
By  the  act  was  created  a  board  of  appraisers,  consisting  of 
the  commissioner  of  the  land  office  and  two  other  members  to 
be  appointed  by  the  governor,  and  it  was  provided  that  for 
the  purpose  of  the  repurchase  this  board  should  ascertain 
the  reasonable  value  of  the  land  and  apraise  it  accordingly. 
The  word  "classfy"  was  used  in  certain  portions  of  the  act 
in  connection  with  the  duties  of  the  board,  and  the  board, 
in  many  instances,  if  not  in  all  instances,  not  only  appraised, 
or  fixed  a  value  on  the  land,  but  classified  it  as  well.  In 
some  instances  the  board  classified  the  land  as  mineral  and 
grazing,  or  mineral  and  agricultural,  when  the  land  as  origi- 
nally purchased  had  not  been  classed  as  mineral  and  had 
been  sold  without  reservation  of  the  minerals.  In  other 
instances,  where  the  land  was  originally  sold  with  reserva- 
tion of  the  minerals  or  after  being  classed  as  mineral,  the 
board  classified  it  simply  as  grazing  or  agricultural.  Rather 
close  questions  arise  whether,  in  the  first  case  above,  the 
State  after  the  repurchase  by  the  former  owner  remained 
the  owner  of  the  minerals  on  account  of  the  mineral  clas- 
sification placed  upon  the  land  by  the  board,  and,  in  the 
second  case  above,  whether  the   former  owner  in  his  re- 


Mineral  Rights  in  State  I^ands  37 

purchase  acquired  the  minerals  in  the  land  by  reason  of 
the  failure  of  the  board  to  class  the  land  as  mineral.  The 
Attorney  General  in  an  opinion  to  the  Commissioner  of  the 
Land  Office,  written  June  25th,  1919  (Opinion  No.  2105  Bk. 
53,  p.  198,  Attorney  General's  Report  1918-20,  p.  302)  held 
that  the  act  did  not  give  the  board  authority  to  class  the 
land  as  mineral.  In  the  case  before  the  Attorney  General 
the  land  had  been  sold  originally  with  reservation  of  the 
minerals  in  the  State  and  after  the  forfeiture  was  classified 
by  the  board  as  grazing  land.  It  was  held  in  the  opinion 
that  the  former  owner,  by  his  repurchase  under  such  cir- 
cumstances did  not  acquire  the  minerals.  The  identical 
question  is  involved  in  a  petition  for  mandamus  against  the 
Commissioner  of  the  Land  Office  in  cause  No.  3536,  Johnson 
vs.  Robison,  Comr.  et  al.,  pending  in  the  Supreme  Court. 
In  the  case  of  Johnson  vs.  Sunshine  Oil  Co.  (227  S.  W. 
698)  the  Court  of  Civil  Appeals  held  that  the  Act  of  1913 
does  not  give  the  board  of  appraisers  authority  to  reclassify 
the  land. 

V.    FITZGERALD  VS.  ROBISON. 

Can  a  valid  permit  to  prospect  for  oil  and  gas  be  issued 
by  the  land  commissioner  upon  land  covered  by  a  void  pat- 
ent? Some  of  the  language  in  the  opinion  of  the  Supreme 
Court  in  the  recent  case  of  Fitzgerald  vs.  Robison  (110  Tex. 
468,  220  S.  W.  768)  seems  to  indicate  that  it  cannot  be.  The 
Court  held  in  that  case  that  the  Commissioner  of  the  Land 
Office  cannot  be  compelled  by  mandamus  to  issue  a  permit 
upon  patented  land,  even  though  the  patent  may  be  void, 
and  announced  that  the  Supreme  Court  will  not  pass  upon 
the  validity  of  patents  in  mandamus  proceedings  brought 
by  private  parties  against  the  land  commissioner,  approving 
and  quoting  from  the  opinion  announcing  the  same  rule  in 
the  case  of  Juenke  vs.  Terrell,  (98  Tex.  237,  82  S.  W. 
1025). 

In  the  opinion  in  the  Fitzgerald  case  the  folowing  state- 
ments are  made : 

"We  do  not  think  the  land  commissioner,  an  executive 
officer,  has  the  authority  or  is  at  liberty  to  disregard  the 
patent,  by  his  own  action  in  effect  declare  it  void,  and  grant 
rights  in  conflict  with  it ;  and  he  should  not  be  compelled 


38  Oil  and  Gas  Laws 

to  do  so.  *  *  *  'j^j^e  commissioner  is  not  a  judicial 
officer.  It  is  not  his  function  to  annul  grants  of  land  form- 
ally made  by  the  State,  and  because  so  made,  entitled  to  be 
respected  until  set  aside  by  judicial  proceedings." 

Do  these  statements  mean  that  if  the  commisioner  disre- 
gards a  void  patent  and  issues  a  permit  upon  the  land  cov- 
ered by  the  patent,  the  permit  is  void?  If  they  do,  they 
appear  to  be  in  conflict  with  several  earlier  decisions  of  the 
Supreme,  Court  holding  that  a  patent  which  is  wholly  void 
constitutes  no  obstacle  whatever  to  the  acquisition  of  rights 
in  such  land  under  the  State  by  other  persons.  (See  Sher- 
wood vs.  Fleming,  25  Tex.  Sup.  408;  Gammage  v.  Powell, 
61  Tex.  629;  Jumbo  Cattle  Co.  vs.  Bacon  and  Graves,  79 
Tex.  5 ;  Stewart  vs.  Cook,  62  Tex.  522.)  To  reconcile  it 
with  the  earlier  decisions,  it  seems  that  the  Fitzgerald  case 
must  be  construed  as  holding  merely  that,  since  the  com- 
missioner is  not  a  judicial  officer  and  it  is  not  his  function  to 
annul  grants  formally  made  by  the  State,  he  cannot  be  com- 
pelled by  mandamus  to  issue  a  permit  upon  land  included 
within  a  patent  and  thus  in  effect  annul  the  grant. 

Vhe  positive  language  used  by  the  Supreme  Court  in  this 
late  decision  strongly  evidences  a  disposition  on  the  part  of 
the  Court  to  look  with  disfavor  upon  the  disturbing  of  land 
titles. 

VI.  RECENT  ACTS  OF  THE  LEGISLATURE. 

While  it  is  not  the  purpose  of  this  article  to  discuss  the 
details  of  the  statutes  relating  to  oil  and  gas  rights  in  State 
lands,  it  is  deemed  advisable  to  call  attention  to  two  acts 
passed  by  the  Thirty-seventh  Legislature  at  its  regular  ses- 
sion, extending  the  terms  and  modifying  the  conditions  of 
permits  theretofore  issued.  These  acts  do  not  affect  per- 
mits upon  sold  school  land.  They  appear  on  pages  7  and 
121  Acts  Regular  Session  Thirty-Seventh  Legislature. 


Mineral  Rights  in  State  Lands  39 


Texas  Constitutions 


Texas  Statutes  and  Opinions  in  the  foregoing  Article 
which  are  not  printed  in  full  in  the  main  work. 

CONSTITUTION   OF   1866. 
Article  7.    Section  39. 

That  the  State  of  Texas  hereby  releases  to  the  owners 
of  the  soil  all  mines  and  mineral  substances,  that  may  be  on 
the  same,  subject  to  such  uniform  rate  of  taxation,  as  the 
Legislature  may  impose.  All  islands  along  the  Gulf  Coast 
of  the  State,  not  now  patented,  or  appropriated  by  locations 
under  valid  land  certificates,  are  reser\ed  from  location  or 
appropriated  (appropriation  in  any  other  manner  by  pri- 
vate individuals  than  as  the  Legislature  may  direct. 

CONSTITUTION  OF  1869. 
Article  10.    Section  9. 

The  State  of  Texas  hereby  releases  to  the  owner  or  own- 
ers of  the  soil  all  mines  and  mineral  substances  that  may 
be  on  the  same,  subject  to  such  uniform  rate  of  taxation  as 
the  Legislature  may  impose. 

CONSTITUTION  OF  1876. 
Article  14.    Section  7. 

The  State  of  Texas  hereby  releases  to  the  owner  or 
owners  of  the  soil  all  mines  and  minerals  that  may  be  on 
the  same,  subject  to  taxation  as  other  property. 

REVISED  STATUTES  1879. 
Section  3800. 
Exact  wording,  as  in  Constitution  1876. 

REVISED  STATUTES  1895. 
Section  4041. 

Exact  wording,  as  in  Constitution  of  1876. 

REVISED  STATUTES,  1911. 
Articles  5396-5400  incl. 


40  Oil  and  Gas  Laws 

GENERAL  LAWS  OF  THE  STATE  OF  TEXAS  24TH 
LEGISLATURE,  PAGE  19.  (YEAR  1895.) 

[S.B.N.  110.]  Chapter  18. 

An  act  to  invest  the  Board  of  Regents  of  the  University 
of  Texas  with  the  management  and  control  of  the  Uni- 
versity  lands. 

Section  1.  Be  it  enacted  by  th€  Legislature  of  the 
State  of  Texas:  That  the  Board  of  Regents  of  the  Uni- 
versity of  Texas  are  hereby  invested  with  the  sole  and  ex- 
clusive management  and  control  of  the  lands  which  have 
heretofore  been  or  v»'hich  may  hereafter  be  set  aside  and 
appropriated  to  or  acquired  by  the  University  of  Texas, 
with  the  right  to  sell,  lease  and  otherwise  manage,  control 
and  use  the  same  in  any  manner  and  at  such  prices  and 
under  such  terms  and  conditions  as  may  to  them  seem  best 
for  the  interest  of  the  University,  not  in  conflict  with  the 
Constitution  of  this  State :  Provided,  that  such  land  shall 
not  be  sold  at  a  less  price  per  acre  than  the  same  class  of 
land  of  other  funds  may  be  sold  at  under  the  statutes. 

Section  2.  The  Commissioner  of  the  General  Land 
Office  is  hereby  directed  to  furnish  as  soon  as  practicable 
to  the  said  Board  of  Regents  complete  and  accurate  maps 
and  all  other  data  necessary  to  show  the  location  and  con- 
dition of  every  tract  of  said  University  lands,  and  shall  at 
all  times  hereafter  furnish  to  said  board  such  additional  in- 
formation as  they  may  require,  and  shall  at  all  times  render 
to  said  board  such  assistance  as  may  be  possible  and  as  they 
shall  request  in  the  discharge  of  the  duties  hereby  im- 
posed on  said  board. 

Section  3.  All  records  and  accounts  of  transactions 
in  University  lands,  and  of  moneys  paid  thereon,  shall  be 
kept  in  the  General  Land  Office  and  in  office  of  the  Treas- 
urer, as  heretofore,  and  all  patents  shall  be  signed  and  is- 
sued as  heretofore,  and  all  moneys  received  on  the  sales  or 
leases  of  said  lands  shall  be  paid  to  the  Treasurer  of  the 
State. 

Section  4.  Whereas,  it  is  desirable  to  place  said  Uni- 
versity lands  under  the  control  of  the  Board  of  Regents  at 
as  early  date  as  possible,  in  order  that  the  interests  of  the 
University  be  properly  looked  after,  and  the  greatest  possi- 


Mineral  Rights  in  State  Lands  41 

ble  amount  of  revenue  realized,  it  is  declared  that  an  im- 
perative public  necessity  exists  requiring  the  suspension 
of  the  Constitutional  rule  which  requires  bills  to  be  read  on 
three  several  days,  and  the  same  is  hereby  suspended,  and 
that  this  act  take  effect  and  be  in  force  from  and  after  its 
passage,  and  it  is  so  enacted. 

[Note. — The  foregoing  act  was  presented  to  the  Gov- 
ernor of  Texas  for  his  approval  on  the  first  day  of  March, 
A.  D.  1895,  but  was  not  signed  by  him  nor  returned  to  the 
house  in  which  it  originated  with  the  objections  thereto  with- 
in the  time  prescribed  by  the  Constitution,  and  thereupon 
became  a  law  without  his  signature. — Allison  Mayfield, 
Secretary'  of  State.] 


42  Oil  and  Gas  Laws 

GENERAL  LAWS  OF  TEXAS,  24TH  LEGISLATURE. 
1895,  PAGE  197. 

Article  42186.  Sale  and  lease  of  public  lands  provided 
for. 

All  lands  heretofore  or  hereafter  surveyed  and  set  apart 
for  the  benefit  of  the  Public  Free  Schools,  the  Lunatic 
Asylum,  the  Blind  Asylum,  the  Deaf  and  Dumb  Asylum, 
and  the  Orphan  Asylum  shall  be  sold  and  leased  under  the 
provisions  of  this  chapter.     [Acts  1895,  p.  63,  §  1.] 

Article;  4218c.  Duties  of  Commissioner  of  the  Gen- 
eral Land  Office. 

The  Commissioner  of  the  General  Land  Office  is  hereby 
vested  with  all  the  power  and  authority  necessary  to  carry 
into  effect  the  provisions  of  this  chapter,  and  shall  have  full 
charge  and  discretion  [direction]  of  all  matters  pertaining 
to  the  sale  and  lease  of  said  lands,  and  their  protection  from 
free  use  and  occupancy  and  from  unlawful  inclosure,  with 
such  exceptions  and  under  such  restrictions  as  may  be  im- 
posed by  the  provisions  of  this  chapter,  or  by  the  constitu- 
tion of  the  state.  He  shall,  as  soon  as  practicable,  adopt 
such  regulations  not  inconsistent  with  the  constitution  or 
this  chapter  as  may  be  deemed  necessary  for  carrying  into 
effect  the  provisions  of  this  chapter,  and  may  from  time  to 
time  alter  or  amend  such  regulations  so  as  to  protect  the 
public  interest ;  but  all  regulations  shall  be  submitted  to  the 
governor  for  his  approval  before  adoption  or  promulgation. 
He  shall  adopt  all  necessary  forms  of  applications  for  sales 
or  leases  and  all  other  forms  necessary  or  proper  for  the 
transaction  of  the  business  imposed  upon  him  by  this  chapter, 
and  may  from  time  to  time  call  upon  the  attorney-general 
to  prepare  such  forms ;  and  it  shall  be  the  duty  of  that 
officer  to  furnish  the  Commissioner  of  the  General  Land 
Office  with  such  advice  and  legal  assistance  as  may  be  re- 
quisite for  the  due  execution  of  the  provisions  of  this 
chapter;  and  it  shall  be  the  duty  of  such  Commissioner  to 
call  upon  the  attorney-general  for  advice  whenever  there 
is  any  doubt  as  to  the  meaning  of  this  chapter  or  any  pro- 
visions thereof.     [lb.,  §  2.] 

Article  4218^.  Commissioner  may  classify  and  re- 
classify. 


Mineral  Rights  in  State  Lands  43 

The  Commissioner  of  the  General  Land  Office  may, 
from  time  to  time,  as  the  public  interest  may  require,  class- 
ify any  or  all  of  the  lands  belonging  to  the  several  funds 
mentioned  in  this  chapter  that  have  not  been  heretofore 
classified,  upon  such  facts  as  may  be  satisfactory  to  him, 
designating  the  same  as  agricultural,  grazing  or  timbered 
land,  according  to  the  fact  in  the  particular  case;  and  he 
may  prescribe  such  regulations  in  relation  thereto  as  he  may 
deem  necessary  to  secure  a  correct  classification.  He  may 
also  reclassify  any  lands  heretofore  erroneously  classified, 
upon  the  official  certificate  of  the  Commissioners'  Court  of 
the  county  in  which  said  land  is  situated,  or  of  the  county 
to  which  such  county  is  attached  for  judicial  purposes, 
certifying  what  the  proper  classification  should  be,  said  cer- 
tificate to  be  signed  by  the  entire  Commissioner's  Court, 
including  the  county  judge,  or  upon  such  other  evidence 
as  may  be  satisfactory  to  the  Commissioner.  [lb.,  §  4; 
amended,  Acts  1897.  p.  184.] 

Article  4218/.  Classified  lands  subject  to  sale  to  ac- 
tual settlers. 

When  any  portion  of  said  land  has  been  classified  to 
the  satisfaction  of  the  Commissioner  of  the  General  Land 
Office,  under  the  provisions  of  this  chapter  or  former  laws, 
such  land  shall  be  subject  to  sale,  but  to  actual  settlers  only, 
except  where  otherwise  provided  by  law,  and  in  quantities 
of  not  less  than  eighty  acres  or  multiples  thereof,  nor  more 
than  four  sections  containing  six  hundred  and  forty  acres, 
more  or  less ;  provided,  that  the  purchaser  shall  not  include 
in  his  purchase  more  than  two  sections  of  agricultural 
land ;  and  provided,  that  where  there  is  a  fraction  less  than 
eighty  acres  of  any  section  left  unsold,  such  fraction  may 
be  sold.  Any  bona  fide  purchaser  who  has  heretofore  pur- 
chased or  who  may  hereafter  purchase  any  lands  as  pro- 
vided herein  shall  have  the  right  to  purchase  other  lands 
in  addition  thereto ;  provided,  that  the  total  of  his  purchases 
shall  not  exceed  four  sections,  and  that  it  shall  not  include 
more  than  two  sections  of  agricultural  land,  upon  his  making 
oath  that  he  is  not  acting  in  collusion  with  others  for  the 
purpose  of  buying  the  land  for  any  other  person  or  corpor- 
ation, and  that  no  other  person  or  corporation  is  interested 


44  Oil  and  Gas  Laws 

in  the  purchase  thereof.  And  if  he  or  his  vendor  has  al- 
ready resided  upon  his  home  section  for  three  years,  or  when 
he  or  his  vendor,  or  both  together,  shall  have  resided  upon 
it  for  three  years,  the  additional  lands  purchased  may  be 
patented  at  any  time.  In  all  cases  where  a  settler  pur- 
chases more  than  one  section,  the  lands  in  excess  of  one 
section  so  purchased,  must  be  situated  within  a  radius  of  five 
miles  of  the  land  occupied  by  him.  Where  any  of  the  lands 
referred  to  in  this  Act  have  been  sold  prior  to  July  30,  1895, 
in  quantities  greater  or  less  than  forty  acres  or  multiples 
thereof,  and  are  in  good  standing  as  to  interest  payments, 
they  may  be  patented  in  such  quantities.  In  any  cases  where 
lands  have  been  forfeited  to  the  State  for  the  non-payment 
of  interest,  the  purchasers  or  their  vendees  may  have  their 
claims  reinstated  on  their  written  request,  by  paying  into 
the  treasury  the  full  amount  of  interest  due  on  such  claim 
up  to  the  date  of  reinstatement;  provided,  that  no  rights  of 
third  persons  may  have  intervened.  In  all  such  cases  the 
original  obligations  and  penalties  shall  thereby  become  as 
binding  as  if  no  forfeiture  had  ever  occured.  [lb.,  §  5  ; 
amended.  Acts   1897,  p.  184.] 

Article  4218^.  Forfeiture  of  land  on  which  purchaser 
settles. 

When  any  purchaser  buys  and  settles  upon  a  section  or 
part  of  a  section  of  school  lands,  and  buys,  either  at  the 
same  time  subsequently,  other  lands  in  addition  thereto, 
a  forfeiture  for  any  legal  cause  of  the  part  on  which  he  re- 
sides, at  any  time  before  the  three  years'  residence  thereon 
has  been  completed,  shall  work  a  forfeiture  of  the  entire 
purchase,  except  such  part  thereof  as  he  may  have  previ- 
ously sold  to  another.  But  after  the  three  years'  residence 
has  been  completed,  a  forfeiture  of  the  home  tract  shall 
not  of  itself  work  a  forfeiture  of  the  other  tract  or  tracts. 
In  case  of  sale  of  any  of  said  tracts  before  the  three  years' 
residence  has  been  completed,  the  vendee  must  reside 
thereon  until  he  has  completed  the  three  years'  occupancy 
from  the  date  of  the  original  purchase,  and  a  failure  to  do 
so  shall  subject  his  land  to  forfeiture;  but  in  case  of  sale 
of  any  of  said  tracts  after  the  completion  of  the  three  years' 
residence,  the  vendee  shall  be  exempt  from  the  condition  of 
settlement  and  occupancy.      [Acts  1897,  p.  184.] 


Mineral  Rights  in  State  Lands  45 

Article  4218  ///.  Owner  of  land  may  buy  contiguous 
lands ;  provision  as  to  occupancy. 

Any  actual,  bona  fide  owner  of  and  resident  upon  any 
other  lands  contiguous  to  said  lands,  or  within  a  radius  of 
five  miles  thereof,  may  also  buy  any  of  the  aforesaid  lands, 
but  in  such  case  a  failure  to  reside  upon  either  his  other 
lands  or  upon  a  part  of  the  additional  lands  so  purchased 
by  him,  so  as  to  make  his  ownership  and  occupancy  thereof 
continuous  for  three  years,  shall  work  a  forfeiture  of  such 
additional  lands  so  bought  from  the  State,  unless  he  shall 
have  sold  his  land  to  another  who  may  and  does  complete 
a  three  years'  continuous  ownership  and  occupancy  of  and 
residence  upon  his  said  lands  as  above  stated  and  as  is 
herein  required  of  actual  settlers.     [Acts  1897,  p.  184.] 

Article  42lSg.  Commissioner  of  Land  Office  to  notify 
county  clerks. 

It  shall  be  the  duty  of  the  Commissioner  of  the  General 
Land  Office  to  notify  in  writing  the  county  clerk  of  each 
county  of  the  valuation  fixed  upon  each  section  of  land  in 
his  county,  and  in  each  county  attached  to  it  for  judicial 
purposes,  which  he  offers  for  sale,  which  notification  shall 
be  kept  by  the  clerk  in  his  office  and  recorded  in  a  well 
bound  book,  which  shall  be  open  to  public  inspection.  [Acts 
1895,  p.  63,  §  6.] 

Article  4218/j.  Price  of  public  free  school  and  Asy- 
lum lands. 

All  agricultural  land  belonging  to  the  public  free  school 
and  the  several  Asylum  funds  shall  be  sold  at  not  less  than 
one  dollar  and  fifty  cents  per  acre ;  and  all  grazing  lands 
shall  be  sold  at  not  less  tlian  one  dollar  per  acre ;  and  all 
timbered  lands  shall  be  sold  at  not  less  than  five  dollars  per 
acre.  By  timbered  lands  is  meant  lands  valuable  chiefly  for 
the  timber  thereon.  Provided,  that  the  owner  of  land  which 
is  in  fact  agricultural,  purchased  under  former  laws,  and 
which  land  is  not  subject  to  forfeiture  at  the  time  this  law 
goes  into  effect,  shall  not  be  permitted,  in  case  said  land  is 
forfeited,  to  purchase  said  forfeited  land  from  the  State 
for  a  less  price  per  acre  than  the  contract  price  under  the 
former  sale.     [lb.,  §  7 ;  amended.  Act.  1897,  p.  184.] 


46  Oil  and  Gas  L,aws 

Article  4218/.  Commissioner  to  make  all  sales ;  condi- 
tions of  same;  status  of  vendee  of  original  purchaser;  sales 
after  forfeiture;  payments,  etc. 

All  sales  shall  be  made  by  the  Commissioner  of  the  Gen- 
eral Land  Office,  or  under  his  direction,  and  he  shall  pre- 
scribe suitable  regulations  whereby  all  purchasers  shall  be 
required  to  reside  upon,  as  a  home,  the  land  purchased  by 
them  for  three  consecutive  years  next  succeeding  the  date 
of  their  purchase,  except  when  otherwise  provided.  Such 
regulations  shall  require  the  purchaser  to  reside  upon  the 
land  for  three  consecutive  years  herein  mentioned,  and  to 
make  proper  proof  of  such  residence  and  occupancy  to  the 
Commissioner  of  the  General  Land  Office  within  two  years 
next  after  the  expiration  of  said  three  years,  by  his  affidavit, 
corroborated  by  the  affidavits  of  three  disinterested  and 
credible  persons,  to  be  certified  by  some  officer  authorized 
to  administer  oaths,  and  on  making  such  proof  the  Com- 
missioner shall  issue  to  the  purchaser,  his  heirs  and  assigns, 
a  certificate  showing  that  fact. 

If,  however,  any  purchaser  has  sold  his  purchase,  or 
any  part  thereof,  his  vendee  shall  be  permitted  to  compute 
the  time  of  the  occupancy  of  his  vendor  as  a  part  of  his 
own  occupancy;  and  if  any  person  has  sold  the  whole  or 
any  part  of  his  purchase  under  this  or  any  former  law,  his 
vendee,  or  if  he  refuses  to  do  so,  the  vendor  himself,  may 
make  proof  of  occupancy  as  provided  herein. 

Any  person  desiring  to  purchase  land  in  accordance 
with  the  provisions  of  this  chapter  shall  forward  his  appli- 
cation to  the  Commissioner,  describing  the  land  sought  to 
be  purchased,  which  application  shall  be  accompanied  with 
the  affidavit  of  the  applicant,  in  effect  that  he  desires  to 
purchase  the  land  for  a  home,  and  has  in  good  faith,  set- 
tled thereon,  except  where  otherwise  provided  herein,  and 
he  shall  also  swear  that  he  is  not  acting  in  collusion  with 
others  for  the  purpose  of  buying  the  land  for  any  other 
person  or  corporation,  and  that  no  other  person  or  cor- 
poration is  interested  in  the  purchase  thereof. 

Any  owner  of  land  heretofore  purchased,  and  which 
land  has  been  or  may  be  forfeited  for  non-payment  of  in- 
terest, shall  have  ninety  days  prior  right  after  this  chapter 


Mineral  Rights  in  State  Lands  47 

goes  into  eifect,  or  after  the  land  is  again  placed  upon  the 
market,  to  purchase  said  land  without  the  condition  of  set- 
tlement and  occupancy,  in  case  it  has  been  occupied  for 
three  consecutive  years  as  required  by  law;  but  if  not,  then 
he  shall  reside  thereon  until  the  occupancy  under  the  first 
and  last  purchase  shall  together  amount  to  said  term  of 
three  years;  provided,  that  when  any  forfeiture  has  been 
made  the  Commissioner  of  the  General  Land  Office  shall 
add  to  the  appraised  value  of  such  land  the  amount  of  in- 
terest due  thereon  at  the  time  of  forfeiture,  which  shall 
be  paid  in  cash  with  the  first  payment  of  one- fortieth  of 
the  appraised  value  of  the  land  when  purchased  under  the 
preference  right  to  purchase  given  herein. 

Any  original  purchaser  or  his  vendee  of  any  of  the  lands, 
the  sale  of  which  is  provided  for  in  this  chapter,  who  has 
improved  such  land  as  a  home,  and  who  has  been  forced  to 
temporarily  abandon  same  on  account  of  drouth,  and  who 
shall  in  good  faith  re-occupy  the  same,  either  by  them- 
selves or  vendees,  within  six  months  after  this  chapter  goes 
into  effect,  shall  not  have  the  forfeiture  declared  against 
them  under  the  law  providing  for  the  forfeiture  of  such 
lands  for  non-occupancy;  provided,  that  they  shall  make 
affidavit,  supported  by  the  affidavit  of  three  disinterested 
witnesses,  that  they  have  re-occupied  the  land  as  a  home 
in  good  faith,  and  that  they  had  abandoned  the  same  since 
their  purchase  on  account  of  the  drouth  and  not  otherwise ; 
and  such  absence  shall  not  be  deducted  from  the  three 
years'  occupancy  required  by  law  in  making  final  proof  of 
occupancy;  and  provided  further,  that  any  purchasers  or 
their  vendees  of  such  lands  who  have  failed  to  make  proof 
of  occupancy  as  required  by  the  law  regulating  such  pur- 
chases shall  have  six  months  after  this  chapter  shall  take 
effect  to  make  proof  of  occupancy  as  required  by  the  pro- 
visions of  this  chapter. 

The  purchaser  shall  transmit  to  the  Treasurer  of  the 
State  one- fortieth  of  the  aggregate  purchase-money  for  the 
particular  tract  of  land,  and  send  to  the  Commissioner  his 
obligation  to  the  State,  duly  executed,  binding  the  pur- 
chaser to  pay  to  the  State  on  the  first  day  of  November  of 
each  year  thereafter,  until  the  whole  purchase-money  is 


48  Oil  and  Gas  L,aws 

paid,  one- fortieth  of  the  aggregate  price,  with  interest  at 
the  rate  of  three  per  cent,  per  annum  on  the  whole  unpaid 
purchase-money,  which  interest  shall  also  be  payable  on 
the  first  day  of  November  of  each  year ;  and  upon  receipt 
of  one-fortieth  of  the  purchase-money  by  the  Treasurer, 
and  the  affidavit  and  obligation  aforesaid  by  the  Commis- 
sioner, the  sale  shall  be  deemed  and  held  effective  from  the 
date  the  affidavit  and  obligation  are  filed  in  the  General 
Land  Office ;  provided,  that  if  the  land  applied  for  be  tim- 
bered land,  then  the  purchaser  shall  be  required  to  pay  the 
full  amount  of  the  purchase-money  at  the  time  of  his  pur- 
chase,    [lb.,  §  9.] 

Article;  4218^.  Optional  payments;  original  purchas- 
ers may  sell,  etc. 

Purchasers  shall  have  the  option  of  paying  the  purchase- 
money  for  their  lands  in  full  at  any  time  after  they  have 
occupied  the  same  for  three  consecutive  years ;  and  when 
they  have  made  such  payment  in  full,  together  with  the 
proof  that  they  have  occupied  the  land  for  three  consecu- 
tive years,  they  shall  receive  patents  for  the  same  upon 
payment  of  the  patent  fee  prescribed  by  law. 

Purchasers  may  also  sell  their  lands,  or  a  part  of  the 
same,  in  quantities  of  forty  acres  or  multiples  thereof,  at 
any  time  after  the  sale  is  effected  under  this  chapter,  and 
in  such  cases  the  vendee,  or  any  subsequent  vendee,  or  his 
heirs  or  legatees,  shall  file  his  own  obligation  with  the  Com- 
missioner of  the  General  Land  Office,  together  with  the 
duly  authenticated  conveyance  or  transfer  from  the  origi- 
nal purchaser  and  the  intermediate  vendee's  conveyance  or 
transfer,  if  any  there  be,  duly  recorded  in  the  county  where 
the  land  lies  or  to  which  said  county  may  be  attached  for 
judicial  purposes,  together  with  his  affidavit,  in  case  three 
years'  residence  has  not  already  been  had  upon  said  land 
and  proof  made  of  that  fact,  stating  that  he  desires  to  pur- 
chase the  land  for  a  home,  and  that  he  has  in  good  faith 
settled  thereon,  and  that  he  has  not  acted  in  collusion  with 
others  for  the  purpose  of  buying  the  land  for  any  other 
person  or  corporation,  and  that  no  other  person  or  corpora- 
tion is  interested  in  the  purchase,  save  himself,  and  there- 
upon the  original  obligation  shall  be  surrendered  or  can- 


Mineral  Rights  in  State  Lands  49 

celed  or  properly  credited,  as  the  case  may  be,  and  the  ven- 
dee shall  become  the  purchaser  direct  from  the  State,  and 
be  subject  to  all  the  obligations  and  penalties  prescribed  by 
this  chapter,  and  the  original  purchaser  shall  be  absolved 
in  whole  or  in  part,  as  the  case  may  be,  from  further  liabil- 
ity thereon ;  provided,  that  whenever  a  town  shall  be  located 
and  established  upon  any  lands  sold  under  this  or  any  for- 
mer chapter,  the  purchaser  or  his  vendee  shall  be  permitted 
to  pay  the  entire  balance  of  principal  and  interest  due  the 
State  upon  such  land  and  obtain  a  patent  therefor  at  any 
time,  but  no  such  payment  shall  be  permitted  or  patent 
issued  until  such  purchaser  or  owner  of  such  land  shall  file 
in  the  General  Land  Office  a  certified  plat  of  such  town, 
made  by  a  surveyor,  which  shall  be  accompanied  by  the 
affidavit  of  the  owner  of  such  land,  corroborated  by  the 
affidavit  of  five  disinterested  and  credible  citizens  of  the 
county,  to  the  effect  that  a  town,  giving  its  name,  has  been 
located  and  established  upon  the  land,  and  that  there  has 
been  erected  therein,  and  is  being  occupied  by  bona  fide 
citizens,  twenty  business  and  residence  houses,  or  either, 
or  both.     [lb.,  §  10.] 

Article  4218/.  Forfeiture  of  purchase  by  non-payment 
of  interest,  etc. 

If  upon  the  first  day  of  November  of  any  year  the  in- 
terest due  on  any  obligation  remains  unpaid,  the  Commis- 
sioner of  the  General  Land  Office  shall  indorse  on  such 
obligation  "Land  forfeited,"  and  shall  cause  an  entry  to 
that  effect  to  be  made  on  the  account  kept  with  the  pur- 
chaser, and  thereupon  said  land  shall  thereby  be  forfeited 
to  the  State  without  the  necessity  of  re-entry  or  judicial 
ascertainment,  and  shall  revert  to  the  particular  fund  to 
which  it  originally  belonged,  and  be  resold  under  the  pro- 
visions of  this  chapter  or  any  future  law;  provided,  if  any 
purchaser  shall  die,  his  heirs  or  legal  representatives  shall 
have  one  year  in  which  to  make  payment  after  the  first  day 
of  November  next  after  such  death,  and  shall  be  absolved 
and  exempt  from  the  requirement  of  settlement  and  resi- 
dence thereon.  And  if  any  purchaser  shall  fail  to  reside 
upon  and  improve  in  good  faith  the  land  purchased  by  him, 
he  shall  forfeit  said  land  and  all  payments  made  thereon  to 


50  Oil  and  Gas  Laws 

the  State,  in  the  same  manner  as  for  non-payment  of  in- 
terest, and  such  land  shall  be  again  for  sale  as  if  no  such 
sale  and  forfeiture  had  occurred;  provided,  that  all  neces- 
sary and  temporary  absence  from  such  land  of  such  pur- 
chaser, for  the  time  of  not  more  than  six  months  in  any 
one  year,  for  the  purpose  of  earning  money  with  which  to 
pay  for  the  land,  or  for  the  purpose  of  schooling  his  chil- 
dren, shall  not  work  a  forfeiture  of  his  title ;  provided,  fur- 
ther, that  nothing  in  this  article  contained  shall  be  con- 
strued to  inhibit  the  State  from  instituting  such  legal  pro- 
ceedings as  may  be  necessary  to  enforce  such  forfeiture, 
or  to  recover  the  full  amount  of  the  interest  and  such  pen- 
alties as  may  be  due  the  State  at  the  time  such  forfeiture 
occurred,  or  to  protect  any  other  right  to  such  land,  which 
suits  may  be  instituted  by  the  Attorney-General  or  under 
his  discretion,  in  the  proper  court  of  the  county  in  which 
the  land  lies  or  of  the  county  to  which  such  county  is  at- 
tached for  judicial  purposes ;  provided,  this  article  shall  be 
printed  on  the  back  of  receipt.     [lb.,  §  11.] 

Article  4218//.  Same;  includes  all  lands  heretofore 
sold,  etc. 

If  upon  the  first  day  of  November  of  any  year  any  por- 
tion of  the  interest  due  by  any  person  to  the  State  of  Texas 
for  lands  heretofore  sold  by  the  State  of  Texas,  whether 
said  lands  be  a  part  of  the  public  domain  or  shall  have  been 
heretofore  set  apart  for  the  public  schools.  University,  or 
any  of  the  other  various  State  institutions,  has  not  been 
paid,  it  shall  be  the  duty  of  the  Land  Commissioner  to  in- 
dorse on  the  obligation  for  said  lands,  "Lands  forfeited" 
and  shall  cause  an  entry  to  that  effect  to  be  made  on  the 
account  kept  with  such  purchaser,  and  thereupon  said  land 
shall  thereby  be  forfeited  to  the  State  without  the  necessity 
of  re-entry  or  judicial  ascertainment,  and  shall  revert  to 
the  particular  fund  to  which  it  originally  belonged,  and  be 
resold  under  the  provisions  of  the  existing  law,  or  any  fu- 
ture law ;  provided,  the  purchaser  of  said  land  shall  have 
the  right,  at  any  time  within  six  months  after  such  indorse- 
ment of  "Lands  forfeited,"  to  institute  a  suit  in  district 
court  of  Travis  county,  Texas,  against  the  Commissioner 
of  the  General  Land  Office,  for  the  purpose  of  contesting 


Mineral  Rights  in  State  Lands  51 

such  forfeiture  and  setting  aside  the  same,  upon  the  ground 
that  the  facts  did  not  exist,  authorizing  such  forfeiture, 
but  if  no  such  suit  has  been  instituted  as  above  provided 
such  forfeiture  of  the  Commissioner  of  the  General  Land 
Office  shall  then  become  fixed  and  conclusive;  provided, 
that  if  any  purchaser  shall  die,  or  shall  have  died,  his  heirs 
or  legal  representatives  shall  have  one  year  in  which  to 
make  payment  after  the  first  day  of  November  next  after 
such  death. 

This  article  is  cumulative,  and  is  not  intended  to  deny 
to  the  State  the  right  to  institute  any  legal  proceedings  that 
may  be  deemed  necessar)^  to  secure  the  purchase-money  or 
possession  of  the  land  so  sold.  And  this  article  is  intended 
to  be  applicable  to  all  purchases  heretofore  made  under  any 
or  all  of  the  various  Acts  of  the  Legislature  under  which 
land  may  have  been  sold  by  the  State.*    [Acts  1897,  p.  39.] 

*See  article  4307^. 

Article  4218  ///.     Office  forfeitures  validated. 

All  forfeitures  of  public  land,  university  land,  public 
school  land,  or  land  set  apart  to  any  of  the  various  state  in- 
stitutions, which  have  been  heretofore  sold  under  any  of 
the  various  acts  of  the  legislature,  and  the  forfeitures  made 
by  the  Commissioner  of  the  General  Land  Office  for  non- 
payment of  any  part  of  the  interest  due  thereon,  and  with- 
out judicial  ascertainment,  shall  be  and  the  same  are  hereby 
in  all  things  made  valid ;  provided,  that  such  purchaser 
shall  have  the  right  at  any  time  within  six  months  after  the 
passage  of  this  article,  and  not  afterward,  to  institute  suit 
in  the  district  court  of  Travis  county  against  the  Commis- 
sioner of  the  General  Land  Office  to  set  aside  such  forfeit- 
ure upon  ground  that  the  facts  did  not  exist  authorizing 
such  forfeiture,  and  such  forfeiture  shall  be  a  full  liquida- 
tion of  all  claims  of  the  state  against  such  purchaser.  [Acts 
1897,  p.  52.] 

Article  421 8;n.  Coupling  occupancy  under  second 
purchase  to  cure  defects  of  first. 

In  all  cases  where  persons  have  purchased  or  may  here- 
after purchase  State,  School  or  Asylum  lands  under  any 
act  of  the  legislature  authorizing  the  sale  thereof  and  re- 


52  Oil  and  Gas  IvAws 

quiring  a  residence  of  three  years  thereon,  and  said  per- 
sons have  so  resided  upon  said  land  or  may  hereafter  re- 
side thereon  for  the  period  of  three  years  as  required  by 
law,  and  their  files  have  been  or  may  hereafter  be  canceled 
and  purchases  annulled  by  the  Commissioner  of  the  Gen- 
eral Land  Office  on  account  of  conflict  with  other  surveys, 
said  persons  shall  have  the  right  to  purchase  other  lands  of 
the  classes  mentioned  in  this  article  without  being  required 
to  reside  thereon.  Persons  desiring  to  avail  themselves  of  the 
benefits  of  this  provision  shall  make  satisfactory  proof  to 
the  Commissioner  of  the  three  years'  residence  under  their 
first  purchase.     [Acts  1895,  p.  63,  §12.] 

Article  4218n.  Vendees  of  original  purchasers  pro- 
tected. 

In  all  cases  where  any  of  the  lands  mentioned  in  this 
chapter  have  been  heretofore  sold  under  any  law  authoriz- 
ing the  sale  thereof,  and  the  original  purchaser  shall  have 
sold  or  may  hereafter  sell  any  part  of  his  purchase  in  quan- 
tities of  forty  acres  or  multiples  thereof,  and  the  con- 
veyance to  his  vendee  or  vendees  is  filed  in  the  (gen- 
eral Land  Office  after  having  been  duly  recorded  in  the 
proper  County,  the  commissioner  and  treasurer  shall 
credit  his  account  with  the  value  of  the  land  sold,  and 
they  shall  open  up  new  accounts  with  the  original  pur- 
chaser and  such  vendee  or  vendees,  and  the  commissioner  of 
the  General  Land  Office  shall  patent  said  land  to  the  owners 
thereof  in  quantities  of  forty  acres  or  multiples  thereof ; 
provided,  that  when  any  of  such  land  is  situated  within  three 
miles  of  a  county  seat  it  may  be  patented  in  twenty-acre 
tracts.      [lb.,  §   13.] 

Article:  4218o.  Cemetery,  church  and  school-house 
sites. 

The  Commissioner  of  the  General  Land  Office  is  hereby 
authorized  to  patent  in  quantities  of  not  less  than  one  nor 
more  than  five  acres  any  of  the  vacant  and  unappropriated 
public  domain  of  Texas  or  any  of  the  lands  mentioned  in 
this  chapter  as  sites  for  cemeteries,  churches  or  school- 
houses.  When  the  land  is  desired  as  a  location  for  a  school- 
house,  the  patent  shall  issue  to  the  county  judge  of  the 


Mineral  Rights  in  State  Lands  53 

proper  county  and  his  successors  in  office  in  trust  for  that 
purpose;  and  when  desired  for  a  church  house  or  a  cem- 
etery, it  shall  be  issued  to  trustees  designated  by  those  re- 
questing the  patent.  If  the  land  has  been  previously  sold  by 
the  State  and  not  patented,  the  owner  thereof  shall  execute 
a  deed  therefor  to  the  county  judge  or  trustees,  as  the  case 
may  be,  and  cause  the  same  to  be  recorded  in  the  office  of 
the  county  clerk  of  the  proper  county,  and  to  be  filed  in  the 
General  Land  Office,  and  shall  be  entitled  to  credit  on  his 
account  with  the  State  for  the  value  therefor.  Except  in 
case  of  vacant  land  the  value  of  the  land  shall  be  deposited 
with  the  State  Treasurer,  and  in  all  cases  the  patent  fees 
shall  be  paid  to  the  Commissioner  of  the  General  Land  Of- 
fice before  patent  issues.  Such  land  shall  be  taken  from  the 
margin  of  a  tract  or  section  or  of  a  subdivision  thereof,  as 
the  case  may  be.     [lb.,  §  14.] 

Article  4218/'.  x\ccounts,  etc.,  with  purchasers  to  be 
kept. 

The  Commissioner  of  the  General  Land  Office  shall  re- 
tain in  his  custody  as  records  of  his  office  all  applications, 
affidavits,  obligations  and  all  other  papers  relating  to  sales 
of  said  lands,  and  shall  cause  to  be  kept  accurate  accounts 
with  each  purchaser.  All  purchase-money  due  upon  lands, 
as  well  as  accrued  interest,  and  all  other  moneys  arising 
from  the  sales  or  leases  of  said  lands  shall  be  paid  by  the 
purchaser  or  lessee  direct  to  the  treasurer  of  the  State,  who 
shall  cause  an  accurate  account  to  be  kept  with  each  pur- 
chaser, and  who  shall  execute  duplicate  receipts  for  all  sums 
of  money  paid  to  him  under  the  provisions  of  this  chapter, 
one  of  which  receipts  shall  be  delivered  to  the  purchaser 
or  his  agent,  and  the  other  transmitted  to  the  Commissioner 
of  the  General  Land  Office.     [lb.,  §  15.] 

Article  4218^.      Sale  of  timber  on  timbered  lands,  etc. 

The  Commissioner  of  the  General  Land  Office  shall 
adopt  such  regulations  for  the  sale  of  timber  on  the  tim- 
bered lands  as  may  be  deemed  necessary  and  judicious. 
Such  timber  shall  not  be  sold  for  less  than  five  dollars  per 
acre,  cash,  except  in  such  cases  as  the  commissioner  may 
ascertain  by  definite  examinations  by  an  approved  agent 


54  Oil  and  Gas  Laws 

appointed  by  him  for  that  purpose,  to  be  paid  by  the  pur- 
chaser, to  be  sparsely  timbered  or  containing  timber  of 
but  little  value,  in  which  case  he  may  sell  the  timber  on 
such  sections  or  part  of  sections  at  its  proper  value ;  pro- 
vided, such  timber  is  sold  at  not  less  than  two  dollars  per 
acre.  The  purchaser  shall  have  five  years  from  the  date 
of  his  purchase  within  which  to  remove  the  timber  there- 
from, and  in  case  of  failure  to  do  so,  such  timber  shall 
thereby  be  forfeited  to  the  State  without  judicial  ascertain- 
ment ;  provided,  that  all  timbered  lands  from  which  the 
timber  has  been  cut  and  taken  ofif  may  be  placed  on  the 
market  and  sold  as  agricultural  or  grazing  lands,  according 
to  classifications  to  be  made  by  the  land  commissioner ;  pro- 
vided, that  the  purchaser  or  his  vendees  of  any  such  timber 
shall  have  the  right  to  purchase  the  land  upon  which  such 
timber  so  purchased  is  situated  at  two  dollars  per  acre, 
cash,  at  any  time  before  the  expiration  of  five  years  from 
date  of  purchase  of  timber  under  the  provisions  of  this 
chapter.     [lb.,  §  16.] 

Article  42lSr.  Lands  to  be  leased;  terms,  conditions, 
etc. 

The  public  lands  and  all  lands  referred  to  in  the  several 
funds  mentioned  in  this  chapter  shall  be  leased  by  the  Com- 
missioner of  the  General  Land  Office  under  the  provisions 
of  this  chapter,  at  not  less  than  three  cents  per  acre.  All 
lands  classified  as  agricultural  and  all  lands  containing  per- 
manenat  water  thereon  shall  be  leased  for  a  term  of  five 
years  or  less,  and  all  lands  classified  as  pastoral  or  dry 
grazing  lands  shall  be  leased  for  a  term  of  not  more  than 
ten  years,  and  the  rental  shall  be  paid  yearly  in  advance,  the 
first  payment  to  be  made  at  the  time  the  lease  contract  is 
entered  into.  If  at  the  termination  of  any  lease  the  lands 
covered  thereby  are  still  for  lease,  the  lessee  thereof  shall 
have  the  preference  right  to  again  lease  such  lands  thereto- 
fore leased  by  him  upon  the  terms  and  at  the  price  then 
fixed  by  law. 

All  leases  shall  be  executed  under  the  hand  and  seal  of 
the  Land  Commissioner  and  delivered  to  the  lessee  or  his 
duly  authorized  agent,  and  such  lease  shall  not  take  effect 


Mineral  Rights  in  State  Lands  55 

until  the  first  annual  rental  is  paid  and  such  lease  thereof 
duly  filed  for  record  in  the  clerk's  office  of  the  proper  county, 
and  it  shall  not  be  necessary  for  the  Commissioner  to  ac- 
knowledge such  lease  contract  so  signed  and  delivered ;  and 
all  leases  under  the  provisions  of  this  chapter  may  be 
advertised  by  the  Commissioner  in  such  manner  as  he  may 
think  best,  and  let  to  the  highest  responsible  bidder  in  such 
quantities  and  under  such  regulations  as  he  may  think  to 
the  best  interest  of  the  State  not  inconsistent  with  the  equi- 
ties of  the  occupant.  All  bids  and  offers  to  lease  may  be  re- 
jected by  him  prior  to  signing  the  lease  contract,  for  fraud 
or  collusion  or  other  good  and  sufficient  cause.  [lb.,  §  17; 
Amend.  1895,  p.  75.] 

Article  4218s.  Same;  lands  subject  to  sale;  termin- 
ation of  lease;  restrictions  as  to  number  of  animals  to  ten 
acres. 

Any  person  desiring  to  lease  any  portion  of  the  lands 
belonging  to  any  of  the  funds  mentioned  in  this  chapter, 
shall  make  application  in  writing  to  the  Commissioner 
of  the  General  Land  Office,  specifying  and  describing  the 
particular  lands  he  desires  to  lease,  and  thereupon,  the 
Commissioner,  if  satisfied  that  the  lands  applied  for  are 
not  in  immediate  demand  for  purposes  of  actual  settlement, 
shall  notify  the  applicant  in  writing  that  his  proposition  to 
lease  is  accepted,  and  thereupon  he  shall  execute  to  the 
lessee  in  the  name  and  by  the  authority  of  the  State  of 
Texas  a  lease  of  said  land  for  such  time  as  may  be  agreed 
upon,  and  when  satisfied  that  the  lessee  has  paid  to  the 
Treasurer  of  the  State  the  rent  for  one  year  in  advance, 
shall  deliver  said  lease  to  the  clerk  of  the  county  court  of 
the  county  in  which  the  land  is  situated  or  of  the  county 
to  which  said  county  is  attached  for  judicial  purposes,  and 
it  shall  be  the  duty  of  the  clerk  to  record  in  a  well-bound 
book,  to  be  kept  in  his  office,  open  to  public  inspection,  a 
memorandum  or  abstract  of  said  lease,  showing  the  num- 
ber of  the  survey  or  surveys  leased,  the  name  of  the  origi- 
nal grantee,  the  amount  leased,  the  name  of  the  lessee,  the 
date  of  the  lease,  and  the  number  of  years  it  has  to  run; 
and  for  entering  said  memorandum  the  clerk  shall  be  en- 
titled to  a  fee  of  twenty-five  cents.     Upon  the  payment 


56  Oil  and  Gas  Laws 

of  said  fee,  the  clerk  shall  deliver  the  lease  to  the  lessee; 
and  no  other  record  of  leases  hereafter  made  shall  be  re- 
quired except  such  memorandum. 

All  lease  contracts  heretofore  made  and  not  recorded, 
shall  be  filed  for  record  with  the  clerk  of  the  proper  county, 
within  three  months  after  this  article  takes  effect,  and  if 
any  lessee  shall  fail  to  have  his  unrecorded  lease  so  filed 
for  record  within  said  time,  the  Commissioner  of  the  Gen- 
eral Land  Office  shall  disregard  such  lease,  and  award  the 
land  to  any  other  applicant  accompanying  his  application 
with  the  certificate  of  the  clerk  that  no  lease  of  said  land 
is  of  record  in  his  office.  When  any  of  such  leases  are 
filed  for  record,  the  clerk  shall  make  the  memorandum  or 
abstract  above  provided  for. 

All  lands  w^hich  may  be  leased  shall  be  subject  to  sale 
at  any  time  except  where  otherwise  provided  herein.  This 
provision  in  regard  to  the  sale  of  leased  lands  shall  apply 
to  leases  heretofore  made,  as  well  as  to  those  hereafter  to 
be  made.  Any  section  or  part  of  a  section  v^hich  may  be 
leased,  shall  not  be  sold,  nor  shall  the  lessee  be  disturbed 
in  his  possession  thereof  during  the  term  of  his  lease,  in  the 
following  cases : 

L  When  the  lessee  has  actually  settled  upon  such  sec- 
tion, or  part  of  a  section,  and  erected  thereon  his  residence 
and  substantial  improvements  for  permanent  settlement. 

2.  When  he  has  placed  on  such  section  or  part  of  a 
section  improvements  of  the  value  of  two  hundred  dollars. 

3.  When  the  aggregate  of  the  land  owned  by  a  settler 
and  leased  by  him  does  not  exceed  one  section. 

Any  lands  which  may  be  leased  south  and  west  of  the 
line  herein  designated  shall  not  be  sold  during  the  term 
of  the  lease  until  otherwise  provided  by  law^ ;  provided, 
the  sections  leased  by  any  one  party  are  not  so  selected 
as  to  detach  sections  which  are  thereby  left  unleased.  Said 
line  begins  at  the  northwest  corner  of  Yoakum  county; 
thence  east,  to  the  northeast  corner  of  Kent  county ;  thence 
south,  to  the  north  line  of  Fisher  county;  thence  west,  to 
the  northeast  corner  of  Scurry  county;  thence  south,  to 
the  north  line  of  Coke  county;  thence  east,  to  the  north- 


Mineral  Rights  in  State  L,ands  57 

west  corner  of  Runnels  county;  thence  south,  to  the  south- 
west comer  of  Runnels  county;  thence  east,  to  the  north- 
west corner  of  Concho  county ;  thence  south,  to  the  south- 
west corner  of  Concho  county ;  thence  east,  to  the  southeast 
corner  of  Concho  county ;  thence  south,  to  the  southwest 
corner  of  McCuUoch  county;  thence  east,  to  the  southeast 
corner  of  McCulloch  county;  thence  south  to  the  south- 
west corner  of  San  Saba  county;  thence  east,  to  the  north- 
west corner  of  Llano  county ;  thence  south,  to  the  south- 
east corner  of  Mason  county;  thence  west,  to  the  north- 
west corner  of  Gillespie  county;  thence  south,  to  the  south- 
west corner  of  Gillespie  county ;  thence  east,  to  the  north- 
east corner  of  Kerr  county;  thence  south,  to  the  south- 
east corner  of  Bandera  county;  thence  west,  to  the  north- 
east corner  of  Uvalde  county;  thence  south,  to  the  south- 
west corner  of  Medina  county;  thence  east,  to  the  north- 
east corner  of  Frio  county;  thence  south,  to  the  northeast 
corner  of  La  Salle  county;  thence  east,  to  the  northeast 
corner  of  McMullen  county ;  thence  south,  to  the  south- 
east comer  of  McMullen  county;  thence  east,  to  the 
Nueces  river ;  thence  down  said  stream  to  its  mouth :  Ex- 
cept in  that  portion  of  the  State  south  and  west  of  the 
above  delineated  line,  any  actual  settler  shall  have  the 
right  to  lease  within  a  radius  of  five  miles  of  the  land 
occupied  by  him,  not  exceeding  three  sections  of  the  land 
held  by  a  leaseholder  who  is  leasing  more  than  ten  sections 
from  the  State,  but  shall  not  be  allowed  thereby  to  reduce 
the  large  leasehold  to  less  than  ten  sections. 

In  all  cases  where  the  lease  is  terminated  under  any 
of  the  provisions  of  this  chapter  before  the  expiration  of 
the  term  of  the  lease,  the  lessee  shall  have  a  pro  rata  credit 
upon  his  next  year's  rent,  or  the  money  refunded  to  him 
by  the  Treasurer,  as  he  may  elect.  On  the  expiration  of 
his  lease,  or  its  termination  under  any  provision  of  law,  the 
lessee  shall  have  the  right  for  the  period  of  sixty  days  to 
remove  any  or  all  improvements  he  shall  have  placed  upon 
the  leased  premises. 

No  purchaser  or  other  person  than  the  lessee  shall  be 
permitted  to  turn  loose  within  such  lessee's  inclosure  more 
than  one  head  of  horses,  mules  or  cattle,  or  in  lieu  thereof 


58  Oil  and  Gas  Laws 

four  head  of  sheep  or  goats,  for  every  ten  acres  of  land 
so  purchased,  owned  or  controlled  by  him  and  uninclosed. 
Each  violation  of  the  provisions  of  this  chapter,  which 
restrict  the  number  of  stock  which  may  be  turned  loose 
in  such  inclosure,  shall  be  an  offense,  and  the  offender, 
on  conviction,  shall  be  punished  by  a  fine  of  one  dollar 
for  each  head  of  stock  he  may  so  turn  loose,  and  each 
thirty  days'  violation  of  the  provisions  of  this  article  shall 
constitute  a  separate  offense.  [lb.,  §  18;  amended  Acts 
1897,  p.  184.] 

Article;  4218/.     Same;  application  for  conditional  lease. 

Any  person  desiring  to  lease  any  portion  of  the  lands 
aforesaid  on  which  no  permanent  water  supply  exists,  shall 
notify  the  Commissioner  of  the  General  Land  Office  in 
writing  that  he  desires  to  lease  lands,  specifying  and  de- 
scribing them,  provided  be  can  obtain  the  necessary  supply 
of  water  by  boring  or  otherwise,  and  that  he  will  within 
ninety  days  lease  said  lands,  provided  such  water  supply 
can  be  obtained;  he  shall  also  make  and  file  with  the  Com- 
missioner of  the  General  Land  Office  his  bond,  with  good 
and  sufficient  personal  security  in  a  sum  equal  to  one  year's 
rental  of  the  quantity  of  land  applied  for,  payable  to  the 
State  of  Texas,  conditioned  that  he  will  diligently  and 
in  good  faith  try  to  secure  water  on  such  land  during  such 
ninety  days,  and  if  secured  will  lease  the  designated  lands 
for  the  term  prescribed  herein,  and  thereupon  the  Com- 
missioner shall  for  such  ninety  days  withhold  the  lands 
thus  designated  from  lease  to  any  other  person ;  within 
or  at  the  expiration  of  said  ninety  days  and  annually 
thereafter  such  applicant  to  lease  shall  pay  to  the  State 
of  Texas,  in  advance,  one  years  rental  of  the  land  applied 
for  by  him,  on  satisfactory  proof  of  which  payment  the 
Commissioner  shall  execute  and  deliver  to  the  lessee  a  lease 
of  the  said  lands,  signed  by  himself  officially  and  attested 
by  the  seal  of  the  Land  Office,  together  with  which  he  shall 
deliver  up  the  bond  of  said  lessee,  marked  "Satisfied." 

If  the  said  lessee  shall  fail  to  apply  for  his  lease  and 
make  the  payment  aforesaid  within  said  ninety  days,  and 
shall  also  within  said  ninety  days  fail  to  make  proof  to 
the  satisfaction  of  the  Commissioner  of  the  General  Land 


Mineral  Rights  in  State  I^ands  59 

Office  within  that  time  that  he  has  in  good  faith  and  dili- 
gently used  proper  means  and  expended  proper  efforts  to 
secure  a  water  supply  on  such  land  and  failed,  then  and 
in  that  case  the  Commissioner  shall  mark  said  bond  "For- 
feited," and  shall  deliver  the  same  to  the  Attorney-General 
of  the  State,  who  shall  at  once  cause  the  said  bond  to  be 
sued  upon  and  collected ;  and  such  collection  shall  become 
a  part  of  the  available  school  fund.  The  penalty  stated 
in  such  bond  is  hereby  declared  to  be  liquidated  damages, 
and  judgment  for  that  sum  shall  in  all  cases  be  recovered 
by  the  State.  Proof  satisfactory  to  the  Commissioner  of 
the  General  Land  Office  that  proper,  suitable  and  diligent 
effort  had  been  made  by  such  applicant  to  secure  water, 
and  that  sufficient  water  could  not  be  secured,  shall  reUeve 
the  principal  and  sureties  on  said  bond  from  all  responsibil- 
ity therein,  and  it  shall  be  marked  "Satisfied"  by  said  Com- 
missioner and  delivered  to  the  principal  therein. 

No  lease  of  less  than  four  sections  of  unwatered  pasture 
lands  shall  be  made  unless  such  number  includes  all  un- 
leased  land  in  that  vicinity  belonging  to  the  several  funds 
mentioned  in  this  chapter.  Lessees  or  their  vendees  who 
shall  have  at  their  own  expense  secured  water  on  their 
leaseholds  in  accordance  with  the  provisions  of  this  article 
shall,  at  the  expiration  of  their  lease  contract,  have  the 
right  to  a  renewal  of  their  leases  for  another  term  of  five 
years  at  the  price  then  provided  by  law,  by  giving  sixty 
days'  written  notice  to  the  Commissioner,  as  provided  in 
the  preceding  article.     [lb.,  §  19.] 

Note.— Section  20  of  the  Act  of  April  4,  1895,  p.  63, 
was  repealed  by  the  Act  of  April  16,  1895,  p.  75. — Codifiers 
of  1895. 

Article  4218w.     Payment  of  rents,  how  made. 

All  lessees  shall  pay  the  annual  rents  due  for  leased 
lands  directly  to  the  Treasurer  of  the  State,  who  shall  exe- 
cute receipts  in  duplicate  for  each  payment  made  by  any 
lessee,  one  of  which  receipts  shall  be  delivered  to  the  lessee 
and  the  other  transmitted  to  the  Commissioner  of  the  Gen- 
eral Land  Office.  The  Treasurer  shall  cause  to  be  kept  an 
accurate  account  with  each  lessee,  and  the  Commissioner 


60  Oil  and  Gas  I^aws 

of  the  General  Land  Office  shall  file  in  his  office  all  appli- 
cations and  other  papers  relating  to  leases,  and  keep  a  rec- 
ord of  all  leases  made,  which  papers  shall  constitute  a  part 
of  the  records  of  his  office.     [lb.,  §  21.] 

Article  4218t/.  Leases,  how  canceled  for  non-payment 
of  rents. 

If  any  lessee  shall  fail  to  pay  the  annual  rent  due  in  ad- 
vance for  any  year  within  sixty  days  after  such  rents  shall 
become  due,  the  Commmissioner  of  the  General  Land  Of- 
fice may  declare  such  lease  canceled  by  a  writing  under  his 
hand  and  seal  of  office,  which  writing  shall  be  filed  with 
the  other  papers  relating  to  such  lease,  and  thereupon  such 
lease  shall  immediately  terminate,  and  the  lands  so  leased 
shall  become  subject  to  purchase  or  lease  under  the  pro- 
visions of  this  chapter.  Such  lease  shall  not  be  made  to 
original  lessees  until  all  arrears  are  fully  paid.  During 
the  continuance  of  all  leases,  and  after  forfeiture,  the  State 
shall  have  a  lien  upon  all  property  owned  by  the  lessee 
upon  the  leased  premises  to  secure  the  payment  of  all  rents 
due,  which  lien  shall  be  superior  to  all  other  liens  what- 
soever; and  it  shall  not  be  essential  to  the  preservation  or 
validity  of  such  lien  that  it  shall  be  reserved  in  the  instru- 
ment of  lease.     [lb.,  §  22.] 

Article  4218w.  Lessees  privileged  to  purchase;  per- 
sonal property  in  improvements. 

Lessees  shall  have  the  right  at  any  time  to  purchase 
their  leased  lands,  subject  to  the  limitations  as  to  quantity 
provided  by  this  chapter,  and  at  the  price  and  on  the  condi- 
tions herein  provided,  without  reference  to  any  improve- 
ments made  on  such  lands  by  such  lessees ;  and  all  improve- 
ments made  by  lessees  on  lands  leased  by  them  are  hereby 
declared  to  be  personal  property,  which  may  be  removed 
by  such  lessees  on  the  expiration  of  their  lease  contracts; 
and  they  shall  have  sixty  days  after  such  expiration  in 
which  to  remove  the  same.     [lb.,  §  23.] 

Article  4218.r.  Suits  to  recover  lands  illegally  occu- 
pied. 

If  the  Governor  shall  at  any  time  be  credibly  informed 
that  any  portion  of  the  public  lands  or  the  lands  belonging 


Mineral  Rights  in  State  Lands  61 

to  any  of  the  several  funds  named  in  this  chapter  have  beea 
inclosed  or  that  fences  have  been  erected  thereon  without 
authority  of  law,  he  is  authorized  in  his  discretion  to  direct 
the  Attorney-General  to  institute  suit  in  the  name  of  the 
State  for  the  recovery  of  such  lands  and  damages,  and  a 
fee  of  not  less  than  ten  dollars  for  the  attorney  when  the 
sum  recovered  is  less  than  one  hundred  dollars,  and  when  it 
is  over  that  sum  the  fee  shall  be  ten  per  cent.,  to  be  paid 
by  the  defendant  for  the  use  and  occupancy  of  the  same, 
and  the  removal  of  such  inclosures  and  fences ;  and  such 
damages  shall  not  be  for  a  less  sum  than  the  amount  of  all 
the  leases  during  such  occupancy. 

For  the  recovery  by  the  State  of  all  lands  sold  under 
the  provisions  of  this  or  former  laws  which  have  been  or 
may  hereafter  be  forfeited  to  the  State  for  any  reason, 
and  for  the  recovery  of  any  money  due  the  states  [State?] 
on  leases  made  under  vhis  or  former  laws,  and  for  the  re- 
covery of  damages  for  the  unlawful  use  and  occupancy 
of  such  lands,  as  provided  in  this  article,  or  any  former 
laws,  jurisdiction  is  expressly  conferred  on  the  courts  of 
Travis  county  having  jurisdiction  thereof  under  the  con- 
stitution concurrently  with  courts  of  the  districts  in  which 
the  land  is  situated,  and  all  such  suits  shall  be  instituted  by 
the  Attorney  General  or  under  his  direction. 

In  suits  provided  for  in  this  article,  the  court  shall  issue 
a  writ  of  sequestration  directed  to  any  sheriff  of  the  State, 
commanding  and  requiring  such  ofiEicer  to  take  such  land 
and  all  property  thereon  belonging  to  the  person  or  per- 
sons so  unlawfully  occupying  said  lands  into  his  actual 
custody,  and  hold  the  same  subject  to  further  orders  of  the 
court,  and  the  State  shall  not  be  required  to  give  bond. 
Such  writ  of  sequestration  may  be  executed  by  any  sheriff 
of  the  State  into  whose  hands  it  may  be  delivered,  and  It 
shall  be  the  duty  of  any  sheriff  into  whose  hands  it  may 
come  to  proceed  and  execute  such  writ. 

The  defendant  in  such  suit  may  replevy  as  in  ordinary 
cases  by  giving  bond  as  prescribed  by  law,  and  such  cases 
shall  have  precedence  on  the  docket  and  stand  for  trial 
before  all  other  cases ;  and  in  case  judgment  is  recovered  by 
the  State  in  such  suit  the  court  shall  order  such  inclosure 


62  Oil  and  Gas  Laws 

or  fences  to  be  removed,  and  shall  tax  the  costs  of  the  suit 
against  the  defendant,  and  all  property  found  upon  the  land 
belonging  to  the  defendant,  not  exempt  from  execution, 
shall  be  liable  to  the  payment  of  such  costs  and  damages 
in  addition  to  the  personal  liability  of  the  defendant. 

Appeals  may  be  prosecuted  from  all  judgments  in  such 
cases  as  in  ordinary  cases,  except  that  the  State  shall  not 
be  required  to  give  bond  to  perfect  its  appeal,  and  such 
cases  on  appeal  shall  have  precedence  over  all  other  cases. 

If  any  person  shall  make  a  lease  contract,  and  after  the 
same  is  inclosed  by  fence  shall  for  any  cause  decide  not  to 
continue  payment  of  his  lease,  either  in  v^^hole  or  in  part,  he 
shall  give  public  notice  by  pubHcation  in  any  local  paper 
having  the  largest  circulation,  for  at  least  sixty  days  before 
the  time  in  which  his  next  annual  payment  shall  become 
due,  that  he  will  not  continue  his  lease  after  the  year  for 
which  payment  is  made,  and  shall  also  state  the  number 
and  block  of  the  land  which  he  will  not  lease  inside  his 
inclosure.  if  he  only  intends  to  surrender  a  part  of  his 
lease,  and  shall  post  and  shall  keep  posted  for  said  sixty  days 
notice  on  all  gates  of  his  pasture  of  such  intention ;  then, 
and  then  only,  he  shall  not  be  subject  to  the  suit  nor  liable 
for  the  damages  provided  for  in  this  article.  [lb.,  §  24; 
Amend.  1895,  p.  75.] 

Article  4218t.     Certain  lands  withheld  from  lease. 

The  Commissioner  of  the  General  Land  Office  may 
withhold  from  lease  any  agricultural  lands  necessary  for 
the  purpose  of  settlement,  and  no  agricultural  lands  shall 
be  leased,  if,  in  the  judgment  of  the  Commissioner,  they 
may  be  in  immediate  demand  for  settlement,  but  such  lands 
shall  be  held  for  settlement,  and  sold  to  actual  settlers 
only,  under  the  provisions  of  this  chapter;  and  all  sections 
and  fractions  of  sections,  in  all  counties  organized  prior 
to  the  first  day  of  January.  1875,  except  El  Paso,  Presidio 
and  Pecos  counties,  which  sections  are  isolated  and  de- 
tached from  other  public  lands,  may  be  sold  to  any  pur- 
chaser, except  to  a  corporation,  without  actual  settlement, 
at  one  dollar  per  acre,  upon  the  same  terms  as  other  pub- 
lic lands  are  sold  under  the  provisions'  of  this  chapter.  [lb., 
§  26;  amended,  Acts  1897,  p.  184.] 


Mineral  Rights  in  State  Lands  63 

Article  4218^^.     Certain  illegal  sales  made  valid. 

All  sales  of  public  school,  university,  and  the  several 
asylum  lands  which  were  sold  as  isolated  and  detached  lands 
under  Section  22,  Chapter  99  of  the  Acts  of  the  Legisla- 
ture of  the  State  of  Texas  of  1887,  and  amendments 
thereto,  which  were  in  fact  not  isolated  and  detached,  as 
construed  by  the  Supreme  Court,  where  the  original  sales 
have  not  been  canceled  and  the  lands  resold,  be  and  the 
same  are  in  all  things  hereby  legalized  and  made  valid  in 
all  cases  where  such  sales  would  have  been  valid  if  the 
lands  so  sold  had  in  fact  been  isolated  and  detached ;  pro- 
vided, that  when  applications  have  been  made  for  the  pur- 
chase of  any  such  lands,  in  advance  of  placing  of  the  same 
on  the  market  again,  it  shall  not  have  the  effect  of  a  sale  of 
such  lands,  nor  of  requiring  the  Commissioner  of  the  Gen- 
eral Land  Office  to  award  such  lands  to  such  applicants. 
[Acts  1897,  p.  160.] 


64  Oil  and  Gas  Laws 

GENERAL  LAWS  OF  TEXAS,  30TH  LEGISLATURE, 

PAGE  495,  SEC.  6f,  YEAR  1907. 

MINERALS,   GAYULE  AND   LECHUGUILLA 

RESERVED. 

Section  6f.  The  land  which  is  now  or  may  hereafter 
be  classed  as  mineral,  may  be  sold  for  agricultural  or  graz- 
ing purposes,  but  all  sales  of  such  land  shall  be  upon  the 
express  condition  that  the  minerals,  shall  be  and  are  re- 
served to  the  fund  to  which  the  land  belongs,  and  such 
reservation  shall  be  stated  in  all  applications  to  purchase; 
provided,  should  any  person  who  has  no  authority  or  right 
to  do  so  cut  or  remove  any  mineral,  gayule  or  lechuguilla 
from  the  land  belonging  to  the  public  free  school  fund,  he 
shall  be  deemed  guilty  of  a  misdemeanor  and  upon  convic- 
tion shall  be  fined  in  a  sum  not  less  than  ten  dollars  nor 
more  than  one  thousand  dollars  and  in  addition  thereto 
judgment  shall  be  rendered  against  the  defendant  in  behalf 
of  the  State  in  a  sum  of  money  equal  to  the  value  of  the 
substance  so  cut  or  removed,  which  shall  be  collected  as 
under  execution,  and  when  collected  the  money  shall  be 
remitted  to  the  State  Treasurer  and  by  him  credited  to  the 
fund  to  which  the  land  belongs.  The  Commissioner  shall 
adopt  all  the  necessary  rules  and  regulations  fOr  the  execu- 
tion of  the  several  provisions  of  this  Act. 

Section  2.  Article  5407  of  the  Revised  Civil  Statutes 
of  1911  shall  be  so  amended  as  to  hereafter  read  as  follows: 

Article  5407.  The  Commissioner  of  the  General  Land 
Office  shall  from  time  to  time  as  the  public  interest  may 
require,  classify  or  reclassify,  value  or  revalue,  any  of  the 
lands  included  in  this  Act,  designating  the  same  as  agri- 
cultural, grazing  or  timber,  or  a  combination  of  said  classi- 
fications, according  to  the  facts  in  the  particular  case,  and 
when  entry  of  the  classification  and  the  appraisement  is 
made  on  the  records  of  the  General  Land  Office,  no  further 
action  on  the,  part  of  the  Commissioner,  nor  notice  to  the 
County  Clerk  shall  be  required  to  give  eflFect  thereto.  No 
land  classed  as  agricultural  shall  be  sold  for  less  than  one 
dollar  and  fifty  cents  per  acre  and  no  land  classed  as  graz- 
ing shall  be  sold  for  less  than  one  dollar  per  acre.  The 
land  included  in  this  Act  shall  be  sold  with  the  reservation 


Mineral  Rights  in  State  Lands  65 

of  the  oil,  gas,  coal  and  all  other  minerals  that  may  be 
therein  to  the  fund  to  which  the  land  belongs  and  all  ap- 
jilications  shall  so  state.  Timber  on  land  shall  be  sold  for 
cash  at  its  fair  market  value.  The  Commissioner  shall 
notify  the  clerk  of  the  proper  county  of  the  sale  of  each 
tract,  giving  the  name  and  address  of  the  purchaser  to- 
gether w^ith  the  price  of  the  land.  When  informed  of  the 
sale  of  any  land  the  clerk  shall  enter  on  his  books  opposite 
the  description  of  the  land  sold,  the  name  of  the  purchaser 
and  the  date  sold,  and  the  notice  of  such  sale  and  the  books 
of  record  and  entry  shall  be  considered  public  records,  and 
be  open  to  public  inspection,  and  it  is  hereby  made  the 
duty  of  the  county  clerk  to  exhibit  the  said  records  to  any 
person  who  shall  apply  therefor. 

REVISED  STATUTES,  1911,  ARTICLES  5396  TO  5400 
INCLUSIVE. 

Article  5396.  Surplus  segregated  from  public  domain, 
when. 

Surveys  and  blocks  of  surveys  made  by  virtue  of  valid 
alternate  scrip  be  and  the  same  are  hereby  declared  to  seg- 
regate from  the  mass  of  the  public  domain  all  land  em- 
braced in  said  surveys,  or  blocks  of  surveys,  as  evidenced 
by  the  comers  and  lines  of  same,  or  by  calls  for  natural 
or  artificial  objects,  or  the  calls  for  the  corners  and  bound- 
aries of  other  surveys,  or  by  the  maps  and  other  records 
in  the  General  Land  Office. 

Article  5397.     Belong  to  public  free  school  fund. — 

All  excess  in  said  surveys  are  donated  and  declared 
to  belong  to  the  public  free  school  fund  of  the  State;  and 
it  shall  be  the  duty  of  the  Commissioner  of  the  General 
Land  Office  to  ascertain,  by  any  and  all  means  practicable, 
the  existence  and  extent  of  such  excesses,  and  to  provide 
for  and  direct  such  surveys,  or  corrected  surveys,  as  may 
be  necessary  for  this  purpose;  provided,  that,  where  such 
surveys  were  made  in  blocks  of  two  or  more  surveys,  said 
respective  surveys  shall  remain  on  the  ground  consecu- 
tively as  placed  therein,  as  shown  by  the  maps,  sketches 
and  field  notes  originally  returned   to  the   General  Land 


66  Oil  and  Gas  I^aws 

Office ;  provided,  that  the  person  who  has  already  pur- 
chased, or  who  may  hereafter  purchase  from  the  State  the 
particular  section  to  which  surplus  shall  by  such  resurvey 
be  made  contiguous,  shall  have  the  prior  right  for  the 
period  of  six  months  after  such  resurvey  shall  have  been 
made,  in  which  to  purchase  such  excess  on  the  same  terms 
on  which  such  purchaser  has  already  bought  or  may  buy. 
(Id.  Sec.  2.) 

Article  5398.  Excess  to  be  Added — All  such  surveys 
which,  under  the  direction  of  the  Commissioner  of  the  Gen- 
eral Land  Office  have  been  or  may  be  hereafter  corrected, 
so  that  all  excess  in  the  original  surveys  shall  be  placed  in 
the  surveys  belonging  to  the  public  free  schools,  are  hereby 
validated,  and  the  action  of  the  Commissioner  is  hereby 
ratified.  And  he  is  directed  and  authorized  to  issue  patents 
to  the  owners  thereof,  and  to  sell  such  surveys  belonging 
to  the  public  free  schools,  securing  to  the  state  the  benefit 
of  such  excesses.     (Id.  Sec.  3.) 

Article  5399.  Shall  Not  Affect — The  provisions  of  this 
law  shall  not  apply  to  nor  affect  the  rights  of  the  third  per- 
sons heretofore  acquired  in  good  faith.      (Id.  Sec.  4.) 

Article  5400.  Conflicts — Nothing  in  the  preceding  four 
articles  shall  apply  to  any  lands  for  which  patents  have 
been  issued.     (Id.  Sec.  5.) 


REPORT    OF    ATTORNEY    GENERAL,     1914-1916, 

PAGE  811. 

NAVIGABLE  WATERS— PUBLIC  WATERS. 

ARTICLE  5338,  REVISED  CIVIL  STATUTES 

OF  1911. 

A  stream  maintains  an  average  width  of  thirty  feet, 
within  the  meaning  of  Article  5338,  Revised  Statutes  of 
1911.  when  the  water  in  the  stream,  at  its  ordinary  stage, 
is  thirty  feet  in  width. 

A  survey  which  crosses  a  stream,  navigable  under  the 
statute  at  the  time  the  survey  was  made,  does  not  deprive 
the  State  of  title  to  the  bed  of  the  stream. 


Mineral  Rights  in  State  Lands  67 

December  1,  1915. 
Hon.  M.  W.  Burch,  County  Attorney,  Decatur,  Texas. 

Dear  Sir:  In  a  recent  letter  you  refer  to  Article  5338 
R.  S.,  of  1911,  which  defines  as  navigable  all  streams  in  so 
far  as  they  retain  an  average  width  of  thirty  feet.  You 
desire  to  know  how  such  width  is  to  be  determined  and 
measured. 

The  article  referred  to  is  as  follows : 

"All  lands  surveyed  for  individuals^  lying  on  navigable 
watercourses,  shall  front  one-half  of  the  square  on  the 
watercourse  and  the  line  running  at  right  angles  with  the 
general  course  of  the  stream,  if  circumstances  of  lines 
previously  surveyed  under  the  laws  permit ;  and  all  streams, 
so  far  as  they  retain  an  average  width  of  thirty  feet,  shall 
be  considered  navigable  streams  within  the  meaning  hereof, 
and  they  shall  not  be  crossed  by  the  Unes  of  any  survey." 

This  article  was  construed  by  Judge  Brown  in  the  case 
of  City  of  Austin  vs.  Hall,  93  Texas  591.  The  opinion  in 
that  case  shows  that  the  article  is  made  up  of  two  distinct 
parts.  The  first  part  undertakes  to  specify  the  manner  in 
which  surveys  shall  be  made  on  navigable  water  courses. 
The  opinion  of  the  Court,  in  the  case  referred  to,  points 
out  that  the  first  portion  of  the  article  relates  to  waters 
which  are  navigable  "according  to  the  general  rule  of  de- 
cisions on  that  subject,"  and  that  the  purpose  of  this  por- 
tion is  to  retain  in  the  State  the  title  to  the  beds  of  all 
streams  navigable  according  to  the  general  rule  of  decisions. 
The  second  portion  of  the  article  arbitrarily  classifies  as 
navigable  streams,  in  addition  to  those  navigable  according 
to  the  general  rule,  those  which  detain  a  width  of  thirty 
feet.  This  construction  of  the  article  becomes  important  to 
a  proper  understanding  of  what  streams  in  Texas  are  nav- 
igable under  the  law  and  therefore  public  streams.  The 
general  rule  in  the  United  States  is  that  those  streams  are 
navigable  which  have  the  capacity  of  use  by  the  public  for 
the  purpose  of  transportation,  commerce,  etc.,  and  it  is  not 
necessary  that  streams,  to  be  navigable,  have  such  capacity 
at  all  times,   it  being  suflficient  if   they   contain   sufficient 


68  Oil  and  Gas  Laws 

water  to  serve  such  useful  purposes  during  any  consider- 
able portion  of  each  year.     See 

Jones  vs.  Johnson,  25  S.  W.  650. 

Orange  Lumber  Co.  vs.  Thompson,  113  S.  W.  563;  126 
S.  W.  604. 

Burr's  Ferry  vs.  Allen,  149  S.  W.  358;  165  S.  W.  878. 

State  vs.  W.  Tenn.  Land  Co.,  127  Tenn.  575 ;  158  S.  W. 
746. 

Lamprey  vs.  State,  52  Minn.  181 ;  18  L.  R.  A.  670. 

The  English  rule  also  applies  in  this  country,  that  is, 
that  a  stream  is  navigable  and  a  public  water  when  it  is 
within  the  ebb  and  flow  of  the  tide.    See 

Bland  vs.  Smith,  43  S.  W.  49. 

Roseborough  vs.  Picton,  34  S.  W.  791 ;  43  S.  W.  1033. 

What  we  desire  to  emphasize  at  this  point  is,  that  not 
only  are  those  streams,  arbitrarily  so  classified  because 
they  maintain  a  width  of  thirty  feet,  navigable  and  public, 
but  that  also  all  streams  which  are  navigable  in  fact,  as 
hereinbefore  defined,  and  all  streams  within  the  ebb  and 
flow  of  the  tide,  are  navigable  and  public  streams  in  Texas, 
and  under  the  statute  above  referred  to  the  title  to  the  beds 
of  such  streams  has  been  retained  by  the  State. 

It  is  generally  true  that  the  question  whether  the  bed 
of  a  particular  stream  in  the  State  has  been  reserved  to  the 
State  or  not  can  be  determined  by  an  examination  of  the 
field  notes  of  the  grants  bordering  on  the  stream.  If  these 
field  notes  make  the  margin  of  the  water  for  the  edge  of 
the  stream  or  water,  or  the  bank  of  the  stream,  the  bound- 
ary or  otherwise  show  a  purpose  to  exclude  the  bed  of  the 
stream,  such  bed  will  remain  the  property  of  the  State, 
regardless  of  the  width  or  navigability  of  the   stream.    See 

Button  vs.  Vierling,  152  S.  W.  450. 

Stewart  vs.  White,  128  Ala.  202;  55  L.  R.  A.  211. 

Hardin  vs.  Jordan,  140  U.  S.  371,  391. 

5  Cyc,  page  905. 

Famum  on  Water  and  Water  Rights,  Sees.  856-8. 

If,  however,  the  grants  bordering  on  the  stream  make 
the  stream  itself  the  boundary  and  not  the  edge  or  bank 


Mineral  Rights  in  State  Lands  69 

of  the  stream  it  then  becomes  important  to  determine 
whether  the  stream  was  navigable,  within  the  meaning  of 
our  laws,  at  the  time  the  survey  was  made,  for,  if  naviga- 
ble, the  survey  would  include  no  part  of  the  bed  of  the 
stream,  and,  if  not  navigable,  it  would  go  to  its  center.  The 
statute  undertakes  to  provide  an  easy  rule  for  the  determi- 
nation of  this  question  by  specifying  the  width  of  thirty 
feet. 

We  have  not  found  any  case  in  Texas  which  directly 
decides  the  method  of  measuring  the  stream  in  order  to 
determine  whether  or  not  it  is  thirty  feet  in  width.  The 
question  was  raised  in  the  case  of  Bunnell  vs.  Sugg  (135 
S.  W.  701),  but  the  Court  of  Civil  Appeals  expressly  de- 
clines to  pass  upon  the  question. 

Judge  Brown,  in  the  case  of  City  of  Austin  vs.  Hall, 
supra,  in  discussing  Article  5538,  by  the  use  of  the  words 
"to  the  water  line,"  indicates  that,  in  his  opinion,  the  pur- 
pose of  this  statute  is  to  give  the  individual  the  title  to  the 
water  line. 

The  opinion  of  the  Court  in  the  case  of  Denny  vs.  Cot- 
ton (22  S.  W.  122),  indicates  that  the  owner  of  a  survey 
on  a  navigable  stream  in  Texas  owns  to  the  low  water 
mark. 

It  is  shown  in  Section  55  of  Farnum  on  "Water  and 
Water  Rights"  that  the  courts  of  most  of  the  states  fix 
the  line  between  the  State  and  the  individual  owner  of  land 
on  navigable  streams  at  the  low  water  mark. 

An  examination  of  the  definition  of  the  words  "low 
water  mark"  in  "Words  and  Phrases,"  shows  that  the 
words  are  ordinarily  used  as  the  contrary  to  the  words 
"high  water  mark";  that  they  do  not  mean  the  mark  in 
case  of  a  drought,  but  the  line  at  which  the  water  usually 
stands  when  free  from  disturbing  causes. 

Article  5338  provides  that  surveys  on  navigable  water 
courses  shall  front  one-half  of  the  square  on  the  water 
course.  Because  of  the  use  of  this  language,  and  the  au- 
thorities above  referred  to.  we  are  of  the  opinion  that  in 
order  to  determine  the  width  of  a  stream  under  this  statute 


70  Oil  and  Gas  Laws 

the  width  of  the  water  in  ordinary  seasons  should  be  meas- 
ured, that  is,  the  water  in  its  ordinary  condition  when  free 
from  disturbing  causes. 

Whether  the  bed  of  a  stream  remains  the  property  of 
the  State  or  was  included  in  the  surveys  on  its  banks  or 
not  depends  not  on  its  width  or  navigability  at  this  time, 
but  upon  its  width  or  navigability  at  the  time  the  surveys 
were  made.  The  fact  that  the  surveys,  by  their  field 
notes,  show  a  purpose  not  to  include  the  bed  of  the  stream 
would  strongly  tend  to  show  that  at  the  time  the  surveys 
were  made  the  stream  was  thirty  feet  or  more  in  width, 
or  navigable  in  fact,  and  so  reserved  to  the  State. 

You  desire  further  to  know  whether  the  fact  that  a 
grant  crosses  a  stream  of  the  State  conveys  the  title  to 
the  bed  of  the  stream,  regardless  of  whether  the  stream  is 
navigable  or  not.  We  advise  you  that  such  grant  could 
not  convey  the  bed  of  the  stream  in  the  face  of  the  statute 
above  referred  to.  The  grant  would  not  be  void  but  would 
pass  title  to  the  land  exclusive  of  the  bed  of  the  stream.  See 
Bunnell  vs.  Sugg  (135  S.  W.  701). 

It  may,  however,  be  difficult  to  determine  the  width 
and  navigability  of  the  stream  at  the  time  the  grant  was 
made,  and  the  fact  that  the  grant  crosses  the  stream  will 
tend  to  show  that  the  stream  was  not  navigable  within  the 
meaning  of  the  law  at  the  time  the  grant  was  made. 
Yours  very  truly, 

G.    B.    S MEDLEY, 

Assistant  Attorney  General. 


BOUNDARIES— WATER  COURSES. 

DISCUSSION    OF    THE    BOUNDARY    BETWEEN 

OKLAHOMA  AND  TEXAS  ALONG  THE 

RED  RIVER. 

The  bank  of  a  river  is  the  bank  which  confines  it  in  time 
of  ordinary  high  water  rather  than  a  bluff  remote  from 
the  channel  which  confines  the  water  in  case  of  unusual 
floods. 


Mineral  Rights  in  State  Lands  71 

September  2,  1918. 

Honorable   J.  T.    Robison,    Commissioner,    General    Land 
Office,  Austin,  Texas. 

Dear  Sir  :  In  your  letter  of  August  30th  to  the  Attorney 
General  you  request  advice  with  reference  to  the  boundary 
between  Oklahoma  and  Texas  along  a  portion  of  the  Red 
River  in  or  adjoining  Wichita  County,  It  appears  that  in 
the  particular  location  the  water  of  the  river  is  confined 
in  normal  times  by  a  well  defined  but  low  bank  on  the 
south,  that  a  few  hundred  yards  back  from  this  low  bank 
(in  some  places,  so  I  am  informed,  as  far  as  1400  varas) 
is  a  high  bluflf  by  which  the  waters  of  the  river  are  con- 
fined in  case  of  unusually  high  water  or  floods ;  that  the 
land  between  the  low  bank  and  the  high  bluff  is  "fine  earth 
covered  with  grass  of  an  undulated  topography,  some- 
times sloping  toward  the  channel  along  which  the  water 
flows."  that  on  this  land  "grass  and  trees  grow,  grazing  is 
good,  and  occasionally  this  area  is  inhabited  by  people  who 
have  their  homes  established  between  the  high  bank  and 
the  waters  edge  as  it  flows  along  the  channel."  The  ques- 
tion presented  is  whether  the  land  above  referred  to  is 
within  Texas  or  Oklahoma.  I  understand  that  certain 
persons  in  Oklahoma  are  contending  that  the  south  bank 
of  the  Red  River  is  the  boundary  between  Texas  and 
Oklahoma.  This  contention  is  perhaps  based  upon  the 
language  used  in  the  decree  of  the  Supreme  Court  of  the 
United  States  in  the  case  of  United  States  vs.  Texas,  162 
U.  S.,  1,  91,  by  which  it  was  adjudged  that  Greer  County 
was  not  a  part  of  the  State  of  Texas  and  in  which  decree 
the  southern  boundary  of  Greer  County  was  described  as 
following  the  south  bank  of  the  Red  River.  In  that  case, 
however,  there  was  no  controversy  as  to  the  title  of  the 
bed  of  the  river,  the  question  being  whether  the  south  fork 
or  the  north  fork  of  the  river  constituted  the  boundary. 

It  has  been  generally  conceded  that  the  boundary  be- 
tw^een  Texas  and  Oklahoma  is  fixed  by  the  terms  of  the 
Treaty  of  1819  between  the  United  States  and  Spain.  By 
Section  3  of  that  Treaty  the  boundary  between  the  two 
countries  was  thus  defined: 


72  Oil  and  Gas  Laws 

"The  boundary  line  between  the  two  countries,  west 
of  the  Mississippi,  shall  begin  on  the  Gulf  of  Mexico,  at  the 
mouth  of  the  river  Sabine,  in  the  sea.,  continuing  north, 
along  the  western  bank  of  that  river  to  the  32nd  degree 
latitude ;  thence,  by  a  line  due  north  to  the  degree  of  lati- 
tude where  it  strikes  the  Rio  Roxo  of  Natchitoches,  or 
Red  River;  then  following  the  course  of  the  Rio  Roxo, 
westward,  to  the  degree  of  longitude  lOO  west  from  Lon- 
don and  25  from  Washington;  then,  crossing  the  said  Red 
River,  and  running  thence,  by  a  line  due  north,  to  the 
river  Arkansas ;  thence,  following  the  course  of  the  south- 
ern bank  of  the  Arkansas,  to  its  source,  in  latitude  42 
north;  and  thence  by  that  parallel  of  latitude,  to  the  South 
Sea." 

The  Courts  of  this  State  have  held  that  the  boundary 
was  fixed  by  the  Treaty  above  referred  to  at  the  middle 
of  the  river.  The  Texas  Court  of  Appeals  so  held  in  the 
case  of  Spears  vs.  State,  8  Texas  Ct.  of  Appeals,  467,  and 
the  Supreme  Court  of  Texas,  as  late  as  1905,  so  held  ex- 
pressly approving  the  judgment  and  opinion  of  the  Court 
of  Appeals  in  the  case  above  referred  to.  See  Parsons  vs. 
Hunt,  98  Texas,  420,  424.  However,  for  the  purpose  of 
determining  the  ownership  of  the  land  between  the  low 
banks  and  the  high  bluflFs  referred  to  in  your  letter,  it  is 
not  necessary'  to  discuss  the  correctness  of  the  opinions  of 
the  Texas  Courts.  At  most  it  can  only  be  contended  that 
the  Treaty  in  effect  designated  the  south  bank  of  the  river 
as  the  boundary.  Granting  for  the  argument  that  such  was 
the  effect  of  the  Treaty,  it  is  our  opinion  that  the  land  in 
question  is  within  the  State  of  Texas  for  two  reasons  which 
will  be  briefly  discussed. 

First,  it  is  a  general  rule  that  when  the  bank  of  a 
stream  is  described  as  the  boundary  the  title  will  extend  to 
the  margin  of  the  stream  unless  there  is  something  to  limit 
it  to  the  top  of  the  bank.  See  Farnham  on  Water  Rights, 
Section  857,  and  the  cases  there  cited.     See  also : 

Halsey  vs.  McCormick,  13  N.  Y.,  296. 

Yates  vs.  Van  DeBogert,  56  N.  Y.,  526. 

Lamb  vs.  Ricketts.  11  Ohio,  311. 

Flemming  vs.  Kenney,  27  Ky.,  155. 


Mineral  Rights  in  State  Lands  73 

There  is  nothing  in  the  Treaty  showing  a  purpose  to 
make  the  top  of  the  river  bank  or  the  top  of  the  highest 
river  bank  the  boundary.  On  the  contrary,  the  language 
of  the  Treaty,  which  has  been  quoted,  makes  no  reference 
to  the  bank,  but  describes  the  east  boundary  as  running  to 
the  river  and  the  north  boundary  as  following  the  course 
of  the  river.  This  language,  if  given  the  construction  most 
favorable  to  Oklahoma,  means,  under  the  rule  above  re- 
ferred to,  that  the  boundary  of  Texas  extends  as  far  north 
as  the  margin  of  the  river  which  is  the  edge  of  the  water 
under  ordinary  conditions  or  the  line  to  which  the  water 
usually  stands  when  free  from  disturbing  causes.  Such 
Hne  has  also  been 'described  as  the  water  line  without  ref- 
erence to  the  extraordinary  freshets  of  winter  or  spring 
or  the  extreme  drouths  of  summer  or  autumn. 

This  rule  is  sustained  by  the  opinion  of  the  Supreme 
Court  of  the  United  States  in  the  case  of  State  of  Ala- 
bama vs.  State  of  Georgia,  13  Howard,  505,  in  which  was 
involved  the  boundary  between  Georgia  and  Alabama  along 
the  Chattahoochee  river.  There  the  boundary  had  been 
defined  by  a  contact  of  cession  between  Georgia  and  the 
United  States  as  running  up  the  river  and  "along  the  west- 
em  bank  thereof."  The  Court  fixed  the  boundary  as  the 
water  line  of  the  acclivity  of  the  western  bank.  That  is  at 
the  water  line  without  reference  to  extraordinary  freshets 
or  unusual  drouths.  The  language  used  by  the  Court  in 
fixing  this  boundary  was  as  follows : 

"We  also  agree  and  decide  that  this  language  implies 
that  there  is  ownership  of  soil  and  jurisdiction  in  Georgia 
in  the  bed  of  the  river  Chattahoochee,  and  that  the  bed  of 
the  river  is  that  portion  of  its  soil  which  is  alternately  cov- 
ered and  left  bare,  as  there  may  he  an  increase  or  diminu- 
tion in  the  supply  of  water,  and  which  is  adequate  to  con- 
tain it  at  its  average  and  mean  stage  during  the  entire  year, 
without  reference  to  the  extraordinary  freshets  of  the  win- 
ter or  spring,  or  the  extreme  drought  of  the  summer  or 
autumn. 

"The  western  line  of  the  cession  on  the  Chattahoochee 
river  must  be  traced  on  the  water-lme  of  the  acclivity  of 
the  western  bank,  and  along  that  bank  where  that  is  de- 


74  Oil  and  Gas  Laws 

fined ;  and  in  such  places  on  the  river  where  the  western 
bank  is  not  defined,  it  must  be  continued  up  the  river  on 
the  line  of  its  bed,  as  that  is  expressed  in  the  conclusion 
of  the  preceding  paragraph  of  this  opinion." 

The  second  reason  for  our  opinion  that  the  land  in 
question  is  within  the  State  of  Texas,  is,  that  the  ordi- 
nary meaning  of  the  word  "bank"  is  the  elevation  of  land 
which  confines  the  river  at  ordinary  high  water,  or  the 
elevated  land  between  ordinary  high  and  ordinary  low 
water.    See  Daniels  vs.  Cheshire,  R.  Co..  20,  N.  H.  85. 

Stone  vs.  City  of  Augusta,  46  Me.,  127. 

Johnson  vs.  Knott,  13  Oregon,  308;  10  Pacific,  418. 

Sundial  Ranch  vs.  May  Land  Co.  Oregon,  205;  119 
Pac,  758. 

Houghton  vs.  Chicago,  etc.,  Ry.  Co..  47  Iowa,  370. 

In  the  language  of  some  of  the  authorities,  "the  banks 
of  a  river  or  stream  are  understood  to  be  that  which  con- 
tains it  in  its  ordinary  state  of  high  water."  See  Minor's 
heirs  vs.  City  of  N.  O.,  115,  L.  A.,  301 ;  38  So.,  999. 

Ensley  Development  Co.  vs.  Powell,  147  Ala.,  300;  40 
So.,  137. 

The  low  bank  on  the  south  side  of  the  Red  River  which 
confines  the  river  in  its  ordinary  state  of  high  water  rather 
than  the  high  blufifs  to  which  the  water  of  the  river  ex- 
tends in  case  of  unusual  floods,  is,  in  our  opinion,  the  south 
bank  of  the  river. 

The  banks  of  a  stream  are  immediately  adjacent  to  its 
bed.  The  banks  confine  the  waters  within  the  bed.  The 
land  referred  to  in  your  letter  cannot  be  considered  a  part 
of  the  bed  of  the  river,  particularly  in  view  of  the  char- 
acter of  its  soil,  its  vegetation,  its  use  and  its  extent. 

For  the  reasons  above  set  out,  and  as  we  understand 
the  facts,  we  advise  you  that  the  land  referred  to  in  your 
letter  between  the  low  banks  which  confine  the  stream  in 
its  ordinary  condition,  and  the  high  bluffs  is  within  the 
State  of  Texas. 

Very  truly, 

G.   B.    S MEDLEY, 

Assistant  Attorney  General. 


Mineral  Rights  in  State  Lands  75 

REPORT  OF  ATTORNEY  GENERAL.  1919-20, 

PAGE  266. 

OIL   AND    GAS— UNIVERSITY    LANDS— LEASE— 

RENTAI^-COMBINING  OR   GROUPING 

PERMITS. 

University  lands  are  not  embraced  in  the  provisions  of 
Chapter  81  of  the  Published  Acts  of  the  First  and  Second 
Called  Sessions  of  the  Thirty-sixth  Legislature,  except  to 
the  extent  provided  for  in  Section  17  of  that  Act. 

One  who  leases  University  lands  from  the  State  for  oil 
and  gas  production  purposes  is  liable  to  the  State  for  a  sum 
of  money  equal  to  two  dollars  an  acre  for  all  lands  em- 
braced in  such  lease,  same  to  be  paid  when  such  lease  is  exe- 
cuted, and  for  a  like  sum  annually  thereafter,  payable  in 
advance,  so  long  as  such  lease  remains  in  effect. 

The  combining  or  grouping  of  permits  on  University 
lands  with  permits  on  other  lands  is  not  authorized. 

References. 

Article  2634,  Revised  Civil  Statutes,  1911; 

Chapter  83,  Published  Acts,  Regular  Session,  Thirty- 
fifth  Legislature. 

Chapter  19,  Pubhshed  Acts,  First  and  Second  Called 
Sessions,  Thirty-sixth  Legislature; 

Chapter  81,  Published  Acts,  First  and  Second  Called 
Sessions,  Thirty-sixth  Legislature. 

Austin,  Texas,  July  15,  1920. 
Hon.  J.   T.  Robison,  Commissioner.  General  Land   Office, 
Austin,  Texas. 

Dear  Sir  :  The  Attorney  General  is  in  receipt  of  yours 
of  the  2nd  ult.  requesting  a  ruling  from  him  on  the  follow- 
ing questions : 

"It  has  become  important  and  quite  urgent  for  this  De- 
partment to  advise  whether  or  not  one  who  develops  oil  and 
gas  in  University  lands,  and  applies  for  a  lease  thereon, 
would  be  under  the  necessity  of  paying  two  dollars  per  acre 
for  the  lease,  as  provided  for  in  Act  of  1917,  or  whether 
one  would  be  relieved  of  payment  of  the  two  dollars  per 
acre  as  provided  in  Act  of  1919,  Chapter  81. 


76  Oil  and  Gas  Laws 

"Again,  can  University  lands  be  combined  or  grouped 
with  school  land,  as  provided  for  grouping  in  the  aforesaid 
Chapter  81,  Acts  of  1919?" 

Since  there  are  no  other  provisions  of  our  law  in  point, 
we  assume  that  your  first  question  is  based  upon  the  theory 
or  supposition  that  Section  14  of  Chapter  81  of  the  Pub- 
lished Acts  of  the  First  and  Second  Called  Sessions  of  the 
Thirty-sixth  Legislature,  hereafter  referred  to  as  the  Act  of 
1919,  is  applicable  to  University  lands.  Otherwise  such 
lands  are  clearly  embraced  in  the  provisions  of  Section  7  of 
Chapter  83  of  the  Published  Acts  of  the  Regular  Session  of 
the  Thirty-fifth  Legislature,  hereafter  referred  to  as  the 
Act  of  1917. 

Section  7  of  the  Act  of  1917  reads  as  follows : 

"If  at  any  time  within  the  life  of  a  permit  one  should 
develop  petroleum  or  natural  gas  in  commercial  quantities 
the  owner  or  manager  shall  file  in  the  General  Land  Office  a 
statement  of  such  development  within  thirty  days  thereafter, 
and  thereupon  the  owner  of  the  permit  shall  have  the  right 
to  lease  the  area  included  in  the  permit  upon  the  following 
conditions : 

"1.  An  application  and  a  first  payment  of  two  dollars 
per  acre  for  a  lease  of  the  area  included  in  the  permit  shall 
be  made  to  the  Commissioner  of  the  General  Land  Office 
within  thirty  days  after  the  discovery  of  petroleum  or  nat- 
ural gas  in  commercial  quantities. 

"2.  Upon  payment  of  two  dollars  per  acre  for  each 
acre  in  the  permit  a  lease  shall  be  issued  for  a  term  of  ten 
years  or  less,  as  may  be  desired  by  the  applicant,  and  with 
the  option  of  a  renewal  or  renewals  for  an  equal  or  shorter 
period,  and  annually  after  the  expiration  of  the  first  year 
after  the  date  of  the  lease  the  sum  of  two  dollars  per  acre 
shall  be  paid  during  the  life  of  the  lease,  and  in  addition 
thereto  the  owner  of  the  lease  shall  pay  a  sum  of  money 
equal  to  a  royalty  of  one-eighth  of  the  value  of  the  gross 
production  of  petroleum.  The  owner  of  a  ^as  well  shall 
pay  a  royalty  of  one-tenth  of  the  value  of  the  meter  output 
of  all  gas  disposed  of  off  the  premises. 

"3.  The  royalties  shall  be  paid  to  the  State  through  the 
Commissioner  of  the  General  Land  Office  at  Austin, 
monthly  during  the  life  of  the  lease.     All  payments  shall 


Mineral  Rights  in  State  Lands  17 

be  accompanied  by  the  sworn  statement  of  the  owner  or 
manager  or  other  authorized  agent  showing  the  amount  pro- 
duced since  the  last  report  and  the  market  value  of  the  out- 
put and  a  copy  of  all  pipe  receipts,  tank  receipts,  gauge  of 
all  tanks  into  which  petroleum  may  have  been  run,  or  other 
checks  and  memoranda  of  amount  put  out  or  into  pipe  hues 
or  tanks  or  pools.  The  books  and  accounts,  the  receipts  and 
discharges  of  all  pipe  lines,  tanks  and  pools  and  gas  lines 
and  gas  pipes  and  all  other  matters  pertaining  to  the  pro- 
duction, transportation  and  marketing  of  the  output  shall  be 
open  to  the  examination  and  inspection  at  all  times  by  the 
Commissioner  of  the  General  Land  Office  or  his  representa- 
tive or  any  other  person  authorized  by  the  Governor  or  At- 
torney General  to  represent  the  State.  The  value  of  any 
unpaid  royalty  and  any  sum  due  the  State  under  this  Act 
upon  any  lease  shall  become  as  prior  lien  upon  all  production 
produced  upon  the  leased  areas  and  the  improvements  sit- 
uated thereon  to  secure  the  payment  of  any  royalty  and  any, 
sum  due  the  State  arising  under  the  operation  of  any  por- 
tion of  this  Act. 

"4.  The  permit  or  lease  shall  contain  the  terms  upon 
which  it  is  issued,  including  the  authority  of  the  Commis- 
sioner to  require  the  drilling  of  wells  necessary  to  offset 
wells  drilled  upon  adjacent  private  land,  and  such  other 
matters  as  the  Commissioner  may  deem  important  to  the 
rights  of  the  applicant  or  the  State." 

Section  14  of  the  Act  of  1919  reads  as  follows : 

"If  oil  or  gas  should  be  produced  in  paying  quantities 
upon  any  land  included  in  this  Act,  the  owner  of  the  permit 
shall  report  the  development  to  the  Commissioner  of  the 
General  Land  Office  within  thirty  days  thereafter  and  apply 
for  a  lease  upon  such  whole  surveys  or  tracts  in  each  per- 
mit as  the  owner  or  owners  of  a  combination  or  permits 
may  desire  to  be  leased  and  accompany  the  application  with 
a  log  of  the  well  or  wells,  and  the  correctness  of  the  lag 
shall  be  sworn  to  by  the  owner,  manager  or  driller,  and 
thereupon  a  lease  shall  be  issued  without  the  payment  of 
any  additional  sum  of  money  and  for  a  period  not  to  exceed 
ten  years,  subject  to  renewal  or  renewals." 

Without  setting  out  our  reasons  for  so  holding,  not 
deeming  it  necessary  to  do  so  in  view  of  the  evident  pur- 


78  Oil  and  Gas  Laws 

port  and  purpose  of  the  Act,  and  especially  by  reason  of 
Section  17  of  the  Act,  it  is  our  opinion  that  none  of  the  pro- 
visions of  the  Act  of  1919  were  intended  to  apply  to  Uni- 
versity lands  otherwise  than  to  the  extent  provided  for  by 
said  Section  17.     That  section  reads  as  follows: 

"The  provisions  of  this  Act,  so  far  as  they  relate  to  a 
combination  of  permits  and  extensions  of  time  for  begin- 
ning development  and  time  for  development,  shall  apply  to 
permits  heretofore  issued  and  those  hereafter  issued  upon 
University  land." 

What  is  the  purpose  of  this  section,  and  what  is  its  ef- 
fect as  to  University  lands  ?  Since  in  our  opinion  this  Act, 
and  therefore  Section  14  of  the  Act,  does  not  include  Uni- 
versity lands,  nor  permits  on  such  lands,  otherwise  than  to 
the  extent  provided  for  by  this  section,  that  is,  since  but  for 
this  section  University  lands,  as  well  as  permits  on  such 
lands,  would  not  have  been  embraced  in  any  of  the  pro- 
visions of  the  Act,  it  follows  that  this  section  must  have 
been  inserted  in  the  Act  for  the  purpose  of  bringing  these 
lands,  or  permits  on  them,  within  those  provisions  of  the 
Act  mentioned  in  it.  This  being  true,  it  follows  that  it  is 
only  those  provisions  of  the  Act  that  are  mentioned  in  this 
section  that  were  intended  to  be  applicable  to  University 
lands,  or  to  permits  on  such  lands.  But  if  it  be  conceded 
that  without  this  section  other  provisions  of  the  Act  would 
be  applicable  to  University  lands,  which  we  do  not  concede 
and  which  we  do  not  believe  could  be  seriously  asserted, 
then  the  effect  of  Section  17  would  be  to  limit  the  Act  in  its 
application  of  these  lands,  or  to  permits  on  them,  to  those 
provisions  named  in  said  section.  This  theory  would  bring 
us  to  the  same  result  as  the  other.  It  is  only  upon  one  or 
the  other  of  these  theories  that  the  presence  of  this  section 
in  the  Act  can  be  intelligently  accounted  for.  Otherwise  it 
would  serve  no  purpose  and  could  be  given  no  effect.  This 
being  true,  the  question  to  be  determined  is  whether  or  not, 
as  under  the  first  theory,  this  section  brings  University 
lands,  or  permits  on  such  lands,  within  the  provisions  of  the 
Section  14  of  the  Act,  or,  as  under  the  other  theory,  whether 
or  not  it  excludes  such  lands  from  the  provisions  of  said 
Section  14.  As  either  theory  will  bring  us  to  the  same  re- 
sult, we  make  no  distinction  between  them  in  our  discussion. 


Mineral  Rights  in  State  Lands  79 

It  will  be  noted  that  Section  17  extends  or  limits  certain 
provisions  of  the  Act  to  permits  on  University  lands;  not 
to  University  lands  as  such,  but  to  permits  on  such  lands. 
What  are  these  provisions?  There  are  three.  Those  that 
apply  to  (1)  a  combination  of  permits,  (2)  the  extension  of 
time  for  beginning  development,  and  (3)  time  for  develop- 
ment. Section  14  clearly  contains  no  provisions  pertaining 
to  the  extension  of  time  for  beginning  or  completing  develop- 
ment and  hence  that  part  of  Section  17  relating  to  exten- 
sions of  time  cannot  have  the  effect  of  bringing  permits  on 
University  lands  within  any  of  the  provisions  of  that  sec- 
tion. It  contains  no  provisions  pertaining  to  extensions  of 
time  and  hence  no  such  provisions  that  could  be  extended  to 
such  permits  either  by  Section  17  or  otherwise. 

The  only  other  provisions  of  the  Act  that  Section  17 
seeks  to  extend  to  permits  on  University  lands  are  those  re- 
lating to  a  combination  of  permits.  Does  that  part  of  Sec- 
tion 17  pertaining  to  a  combination  of  permits  have  the  ef- 
fect of  extending  to  permits,  or  to  a  combination  of  permits, 
on  University  lands  any  of  the  provisions  of  Section  14? 
We  think  not.  Section  14  deals  with  the  leasing  of  lands 
included  in  the  Act  on  which  oil  or  gas  may  have  been  de- 
veloped in  paying  quantities,  and  not  with  permits.  It  makes 
it  the  duty  of  one  holding  a  permit  or  a  combination  of  per- 
mits on  land  included  in  the  Act  to  make  certain  reports  and 
to  apply  for  a  lease  on  such  lands  within  thirty  days  from 
the  date  on  which  oil  or  gas  may  be  produced  on  such  land 
in  paying  quantities,  and  in  such  case  directs  the  issuance  of 
a  lease  on  such  land  without  the  payment  of  any  additional 
sum  of  money.  There  is  nothing  in  this  section  applicable 
to  permits  or  to  a  combination  of  permits  as  such  and  hence 
nothing  in  it  that  could  be  extended  to  permits  on  University 
or  other  lands,  either  by  Section  17  or  otherwise.  Its  pro- 
visions relate  to  certain  lands,  that  is,  to  lands  included  in 
the  Act,  and  not  to  permits  or  to  a  combination  of  permits 
as  such  on  those  or  any  other  lands.  It  is  true  that  Section 
14  uses  the  expression  "a  combination  of  permits"  but 
clearly  only  for  the  purpose  of  identifying  the  person  and 
land  to  which  the  section  relates,  that  is,  such  of  the  lands 
included  in  the  Act  as  may  have  oil  or  gas  produced  on  them 
in  paying  quantities,  and  the  person  or  persons  who  may  b€ 


80  Oil  and  Gas  Laws 

the  owner  or  owners  of  the  permit  or  combination  of  per- 
mits on  such  lands.  These  provisions  have  reference  to 
the  land  and  persons  mentioned  and  not  to  permits,  while,  as 
has  been  stated,  Section  17  declares  certain  provisions  of  the 
Act  relating  to  a  combination  of  permits  to  be  applicable  to 
permits  on  University  lands.  Since  Section  17  extends  only 
to  permits  on  University  lands  certain  provisions  of  the  Act 
applicable  to  a  combination  of  permits,  and  since  Section  14 
contains  no  provisions  applicable  to  permits  of  any  kind,  it 
follows  that  the  former  does  not  and  cannot  extend  the  pro- 
visions of  the  latter  to  University  lands. 

As  to  your  second  question,  we  have  reached  the  conclu- 
sion that  the  law  does  not  authorize  permits  on  University 
lands  to  be  grouped  or  combined  with  permits  on  other  lands. 
Section  12  of  the  Act  of  1919  authorizes  the  grouping  or 
combining  of  permits  on  lands  included  in  that  Act,  that  is, 
on  surveyed  Public  Free  School  and  Asylum  lands  sold  by 
the  State  with  a  mineral  classification  or  reservation,  and 
by  Section  17  of  the  Act  the  same  is  authorized  as  to  per- 
mits on  University  lands,  but  we  know  of  no  law  authorizing 
the  grouping  or  combining  of  permit?  on  other  lands. 
Since,  therefore,  there  is  no  law  authorizing  the  group- 
ing or  combining  of  permits  on  other  lands,  that  is,  if 
combining  of  permits  on  lands  included  in  that  Act,  that  is, 
permits  on  other  lands  may  not  be  grouped  or  com- 
bined, it  follows  that  the  grouping  or  combining  of  permits 
on  University  lands  with  permits  on  such  other  lands  is  not 
authorized. 

But  may  not  permits  on  University  lands  be  grouped  or 
combined  with  permits  on  such  Public  Free  School  and  Asy- 
lum lands?  We  think  not.  One  reason  is  that  the  law 
does  not  expressly  authorize  it.  Section  12  of  the  Act  of 
1919  authorizes  permits  on  lands  included  in  that  Act  to  be 
grouped  or  combined  with  other  permits  on  such  lands. 
Section  12  of  the  Act  extends  this  provision  to  permits  on 
University  lands,  that  is,  authorizes  permits  on  University 
lands  to  be  grouped  or  combined  with  permits  on  any  other 
lands.  Another  reason  is  that  certain  provisions  of  the  law 
applicable  to  permits  on  such  Public  Free  School  and  Asy- 
lum lands  are  not  applicable  to  permits  on  University  lands, 
and  certain  provisions  of  the  law  applicable  to  permits  on 


Mineral  Rights  in  State  Lands  81 

University  lands  are  not  applicable  to  permits  on  such  Pub- 
lic Free  School  and  Asylum  lands.  Still  another  reason  is 
that  the  leasing  of  these  respective  lands  is  required  to  be 
upon  different  terms  and  conditions.  Hence  to  combine  or 
group  permits  on  University  lands  with  permits  on  Public 
Free  School  and  Asylum  lands,  or  with  other  lands,  would 
render  confusing  if  not  impossible  of  application  those  pro- 
visions of  our  laws  applicable  to  permits  upon  and  to  the 
leasing  of  these  respective  lands,  as  well  as  to  operations 
under  such  leases. 

We  are  of  the  opinion,  therefore,  and  you  are  so  advised : 

FIRST :  That  one  leasing  University  lands  from  the 
State  for  oil  and  gas  production  purposes  is  required  to  pay 
therefor  to  the  State  a  sum  of  money  equal  to  two  dollars 
an  acre  upon  the  area  to  be  included  in  such  lease  at  the 
time  the  lease  is  executed,  and  a  like  sum  annually  there- 
after upon  all  such  lands  as  remain  within  and  subject  to 
such  lease. 

SECOND :  That  the  combining  or  grouping  of  per- 
mits on  University  lands  with  permits  on  other  lands  is  not 
authoried. 

It  will  be  understood,  of  course,  that  this  ruling  has  to 
do  with  the  combining  or  grouping  of  permits  as  provided 
for  by  said  Act  of  1919  and  is  not  intended  to  have  any 
bearing  upon  those  provisions  of  the  law  that  relate  to  the 
sale  of  permits  or  leases. 

Very  truly  yours, 

W.  W.  Caves, 
Assistant  Attorney  General. 


OIL  &  GAS  LAWS 
OF  TEXAS 


Oil  and  Gas  Laws  85 

Laws  of  Mines  and 
Mining 

GENERAL  LAWS,   18th  LEGISLATURE,  PAGE   100. 

AN   ACT  TO   PROVIDE   FOR  THE   DISPOSITION 

OF  THE  MINERALS  IN  THE  PUBLIC  SCHOOL, 

UNIVERSITY,   ASYLUM  AND  PUBLIC  LANDS 

OF  THE  STATE  OF  TEXAS. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  That  all  minerals  in  the  Public  School, 
University,  Asylum  and  public  lands  of  the  State  of  Texas 
be  and  the  same  are  reserved  from  the  operation  of  the 
laws  for  the  sale  of  such  lands  and  shall  be  used  and  dis- 
posed of  for  the  benefit  of  the  respective  funds  for  which 
said  lands  are  now  set  apart  as  hereinafter  prescribed. 

Section  2.  The  State  Land  Board  shall  have  the  con 
trol  and  management  of  the  disposition  and  use  of  said 
minerals  and  shall  provide  such  rules  and  regulations 
therefor  as  to  them  may  seem  best  within  the  provisions 
of  this  act. 

Section  3.  When  a  prospector  or  miner  shall  discov- 
er upon  any  of  said  lands  any  mine  of  coal,  iron,  tin,  cop- 
per, lead,  silver  or  gold  he  shall  immediately  stake  the 
same  in  its  apparent  extent  not  to  exceed  in  size  three 
hundred  feet  one  way  by  fifteen  hundred  feet  the  other 
way,  the  comers  to  be  marked  by  distinct  stone  land  marks 
and  shall  within  forty  days  thereafter  file  a  description 
of  said  mine,  the  county  in  which  it  is  situated,  the  num- 
ber of  survey,  the  company  or  individual  to  whom  the 
same  was  issued,  and  such  other  description  as  is  practi- 
cable in  the  clerk's  office  of  the  county  where  the  land  lies 
or  if  an  unorganized  county,  then  in  the  county  to  which 
the  same  is  attached  for  surveying  purposes  which  de- 
scription shall  be  verified  by  an  affidavit  of  the  fact  that 
he  is  the  discoverer  of  said  mine,  and  that  he  intends  to 
fully  prospect  the  same  and  comply  with  the  law  pertain- 
ing to  the  same  in  good  faith;  and  shall  be  registered  in 
the  record  of  deeds.  He  shall  then  have  the  privilege  of 
selling  the  rights  he  may  have  acquired  in  said  mine — 


86  Oil  and  Gas  Laws 

provided  that  he  or  his  assigns  shall  within  ninety  days 
after  the  filing  of  such  description  have  said  mine  sur- 
veyed and  shall  file  a  copy  of  said  survey  together  with 
specimens  of  the  ore  taken  therefrom  with  the  State  Land 
Board  at  Austin. 

Section  4.  After  the  filing  of  such  survey  and  speci- 
mens, the  discoverer  or  his  assigns  shall  work  said  mine 
for  his  own  benefit  and  for  the  benefit  of  the  fund  to 
which  said  mine  belongs,  said  fund  to  receive  five  per 
centum  of  the  gross  receipts  from  said  mine  to  be  paid 
and  received  in  such  manner  and  under  such  regulations  as 
the  Land  Board  may  prescribe  by  general  rules  applying 
alike  to  all  such  cases — provided  that  the  mines  shall 
be  worked  subject  to  such  rules  and  regulations  as  the 
Land  Board  may  prescribe,  and  which  may  be  from  time 
to  time,  changed,  and  they  may  by  regulation  prescribe 
such  conditions  of  forfeiture  of  the  rights  hereby  con- 
ferred as  they  may  think  proper,  and  on  their  violation 
declare  such  forfeiture — provided  further  that  any  one 
taking  up  a  mining  claim  of  the  dimensions  herein  pro- 
vided for  shall  do  at  least  two  hundred  dollars  worth  of 
work  per  annum  on  the  same,  and  furnish  annual  proof 
of  the  same  to  the  Land  Board.  Any  one  failing  to  com- 
ply with  this  provision  shall  forfeit  his  interest  and  it 
shall  be  subject  to  entry  by  any  other  person  and  it  shall 
require  no  judicial  forfeiture. 

Section  5,  The  filing  and  registration  of  the  descrip- 
tion hereinbefore  provided  to  be  filed  with  the  county 
clerk  shall  be  constructive  notice  of  claim.  But  all  per- 
sons who  have  heretofore  discovered  and  worked  mines  on 
said  lines  shall  have  a  prior  right  for  ninety  days  after 
the  passage  of  this  act  in  which  to  comply  with  this  law 
as  discoverer. 

Section  6.  This  being  a  matter  of  great  general  in- 
terest and  importance  and  there  being  no  law  regulating 
the  same  an  imperative  public  necessity  and  emergency 
exists  for  its  immediate  passage,  therefore  it  is  enacted 
that  the  constitutional  rule  be  suspended  and  that  this  act 
take  effect  from  and  after  its  passage. 
Approved  April  14,  1883. 
Takes  effect  after  passage. 


Oil  and  Gas  Laws  87 

GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  188. 
VALIDATING    SALES    OF    SCHOOL    LAND,    UNI- 
VERSITY,   ASYLUM    AND    PUBLIC    LANDS 
MADE  BY  AUTHORITY  OF  ACTS  OF  APRIL 
12   AND    14,    1883,   WHEREIN   THE    STATE 
DID  NOT  SPECIFICALLY  RESERVE 
THE    MINERALS. 

H.  B.  No.  208.]  Chapter  121. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas : 

Section  1.  In  all  sales  of  public  free  school  lands. 
University,  Asylum  and  public  lands  made  by  the  State  of 
Texas,  by  authority  of  the  Acts  of  the  Legislature  of  date 
April  12th  and  14th,  1883,  wherein  the  mineral  rights  in 
said  lands  were  not,  by  the  State  specially  reserved,  in  its 
award  of  sale  or  classification  of  such  lands,  at  the  time 
of  such  sale,  reserved  to  the  State  of  Texas,  the  sales  of 
such  land  by  the  State  be,  and  the  same  are  hereby  vali- 
dated, and  the  State  of  Texas  hereby  relinquishes  unto 
the  owners  of  said  lands,  when  paid  for,  all  of  its  rights 
and  title  to  said  minerals. 

Section  2.  The  fact  that  the  State  of  Texas,  under 
the  Acts  of  the  Legislature  of  Date  April  12th  and  14th, 
1883,  sold  various  and  sundry  tracts  of  the  public  free 
school  lands.  University,  asylum  and  public  lands  of  the 
State  of  Texas  without  reserving  any  mineral  rights  unto 
itself,  in  its  award  of  sale,  or  classification  of  such  lands, 
which  said  lands  in  a  great  many  instances  have  been 
transferred  and  passed  into  the  hands  of  innocent  pur- 
chasers in  good  faith,  and  if  suits  should  now  be  brought 
by  the  State  for  such  minerals  would  create  a  great  con- 
fusion and  financial  loss  to  a  great  many  citizens  of  Tex- 
as, who  acted  in  good  faith  in  the  purchase  of  said  lands 
and  paid  valuable  considerations  therefor,  creates  an  emer- 
gency and  an  imperative  public  necessity  that  the  consti- 
tutional rule  requiring  that  bills  be  read  on  three  several 
days  be  suspended,  and  the  same  is  hereby  suspended; 
that  this  Act  take  effect  and  be  in  force  from  and  after  its 
passage,  and  it  is  so  enacted. 

Approved  March  24,  1919. 

Becomes  effective  90  days  after  adjournment. 


88  Oil  and  Gas  Laws 

GENERAL  LAWS,  21  ST  LEGISLATURE,  PAGE  116. 
MINES  AND  MINING. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  That  all  the  public  school,  university,  asy- 
lum, and  public  lands  containing  valuable  mineral  deposits 
are  hereby  reserved  from  sale  or  other  disposition,  except 
as  herein  provided,  and  are  declared  free  and  open  to  ex- 
ploration and  purchase  under  regulations  prescribed  by 
law  by  citizens  of  the  United  States  and  those  who  have 
declared  their  intention  of  becoming  such :  Provided,  That 
all  who  have  located  and  recorded  claims  under  previous 
laws  and  have  not  abandoned  same,  but  are  engaged  in 
developing  same,  shall  have  a  prior  preference  right  for 
thirty  days  after  the  passage  of  this  act  in  which  to  re- 
locate same  under  this  act. 

Section  2.  It  shall  be  the  duty  of  the  commissioner 
of  the  general  land  office  immediately  upon  the  passage 
of  this  act  to  have  a  map  made  showing  the  location  of 
all  public  school,  university,  asylum,  and  public  lands 
which  are  unsold  at  that  date;  and  it  shall  be  the  duty  of 
the  geological  and  mineralogical  survey  to  examine  all 
such  lands  as  soon  as  practicable  thereafter,  and  to  desig- 
nate such  tracts  as  are  apparently  mineral  bearing  as 
mineral  lands  for  the  purposes  of  this  act.  If  mineral 
lands  are  afterwards  claimed  to  exist  at  other  locations 
than  are  so  designated,  they  shall  also  be  examined  and 
classified  accordingly. 

Section  3.  It  shall  be  the  duty  of  the  commissioner 
of  the  general  land  office  to  unite  a  suitable  number  of 
these  mineral  locations  into  mining  districts,  in  each  of 
which  shall  be  a  surveyor  who  must  either  be  the  survey- 
or of  the  district  or  county  or  a  regularly  appointed  depu- 
ty, and  an  officer  qualified  to  administer  oaths. 

Section  4.  A  mining  claim  upon  veins  or  lodes  of 
quartz  or  other  rocks  in  places  bearing  silver,  cinnabar, 
lead,  tin  copper,  or  other  valuable  metals,  (excluding 
deposits  of  iron,  coal,  kaolin,  baryta,  salt,  marble,  fire 
clays,  valuable  building  stones,  oil,  or  natural  gas),  may 
equal  but  shall  not  exceed  one  thousand  five  himdred  feet 
along   the    vein    or   lode.      No    such    claim    shall    exceed 


Oil  and  Gas  Laws  89 

twenty-one  acres  in  total  area.  The  end  line  of  each 
claim  shall  be  parallel  to  each  other,  and  all  claims  shall 
be  in  the  form  of  a  parallelogram  or  square  unless  such 
form  is  prevented  by  adjoining  rights  or  boundaries  of 
the  section  in  which  the  claim  lies.  The  locator  under 
this  act  shall  be  entitled  to  the  use  of  all  the  superficial 
area  between  the  enclosing  lines  of  the  claim,  and  to  all 
minerals  thereon,  and  between  the  side  and  end  lines  ex- 
tnding  downwards  vertically  until  the  rights  secured  by 
posting  are  forfeited  as  provided,  and  in  all  conflicts  prior- 
ity of  location  shall  decide. 

Sections  Five  to  Eight  are  omitted,  as  they  are  only 
applicable  to  metals. 

Section  9.  Whenever  the  owners  of  any  mining  claim 
shall  desire  a  patent,  they  shall,  within  five  years  after 
the  filing  of  the  application  for  survey,  file  their  applica- 
tion for  a  patent  upon  their  claim  with  the  commissioner 
of  the  general  land  office,  accompanied  with  the  receipt 
of  the  state  treasurer,  showing  that  twenty-five  dollars 
per  acre  has  been  paid  by  the  applicant  for  patent  to  the 
state  treasurer.  No  patent  shall  be  issued  in  any  case 
until  the  expiration  of  sixty  days  from  the  filing  of  the 
application.  Upon  filing  said  application,  the  applicant 
shall  cause  to  be  published  for  four  successive  weeks,  one 
insertion  each  week,  in  some  newspaper  published  in  the 
county  in  which  the  mine  is  situated,  if  there  be  any;  if 
not,  then  in  some  newspaper  published  in  the  nearest 
county  to  the  mine  in  which  a  newspaper  is  published,  a 
notice  stating  the  fact  that  application  has  been  filed  for 
patent  on  the  claim  (or  claims),  describing  them  clearly. 
A  copy  of  the  printed  notice  with  affidavit  that  it  has 
been  published  as  required  by  this  section,  and  that  all  the 
requirements  of  this  act  have  been  complied  with,  shall  be 
filed  with  the  commissioner  of  the  general  land  office  be- 
fore patent  shall  issue.  After  the  expiration  of  thirty 
days  after  the  last  insertion  of  said  notice,  patent  shall 
issue  unless  protest  has  been  filed. 

Section  10.  Any  person  or  association  of  persons 
qualified  as  required  by  section  1  of  this  act,  shall  have  the 
right  to  loacte  and  obtain  a  patent  on  any  quanity  of  these 
lands,  containing  deposits  of  coal,  iron  ore,  kaolin,  baryta, 


90  Oil  and  Gas  Laws 

salt,  marble,  fire  clay,  oil,  natural  gas,  or  valuable  building 
stones,  in  legal  subdivisions  of  the  section,  not  exceeding 
one  hundred  and  sixty  acres  to  an  individual  person  or 
three  hundred  and  twenty  acres  to  an  association  or  cor- 
poration, upon  compliance  with  the  general  land  law  in 
regard  to  obtaining  titles  and  with  regulations  of  section 
9  in  regard  to  publication,  etc.,  and  the  payment  to  the 
state  treasurer  of  not  less  than  ten  dollars  per  acre 
lor  such  lands  where  the  same  shall  be  situated  more  than 
ten  miles  from  any  completed  railroad,  and  not  less  than 
twenty  dollars  for  such  lands  as  shall  be  within  ten  miles 
of  such  road :  Provided,  That  when  any  association  of 
tiot  less  than  four  persons  shall  have  expended  not  less 
than  five  thousand  dollars  in  working  and  improvmg  any 
such  mine  or  mines,  such  association  may  enter  not  ex- 
ceeding six  hundred  and  forty  acres,  including  such  min- 
ing improvements:  And  provided  further,  That  this  act 
shall  be  held  to  authorize  only  one  entry  by  the  same 
person  or  association  of  presons  under  its  provisions;  and 
no  association  of  persons,  any  member  of  which  shall  have 
taken  the  benefit  of  this  act,  either  as  an  individual  or  as 
a  member  of  any  other  association,  shall  enter  or  hold 
any  other  land  under  the  provisions  of  this  act;  and  no 
member  of  any  association  which  shall  have  taken  the 
benefit  of  this  act  shall  enter  or  hold  any  other  lands  under 
its  provisions:  And  provided  further,  That  nothing  in 
this  section  shall  be  construed  to  authorize  the  sale  of 
lands  valuable  for  mines  of  gold,  silver,  and  copper,  or 
other  minerals  enumerated  in  section  4. 

Section  11.  Any  person  desiring  to  contest  the  issu- 
ance of  patent  may  do  so  by  filing  with  the  commissioner 
of  the  general  land  office  a  protest,  setting  forth  the 
grounds  of  objection  generally,  and  that  protestant  has  an 
interest  in  the  subject  matter,  which  protest  shall  also  state 
that  the  same  is  presented  in  good  faith  and  not  to  injure 
or  delay  the  applicants,  or  any  of  them,  and  the  same  shall 
be  verified  by  affidavit;  whereupon  it  shall  be  the  duty  of 
the  commissioner  to  withhold  patent  until  the  controversy 
is  ended :  Provided,  That  if  the  protestant  shall  not,  with- 
in thirty  days  after  filing  his  protest,  institute  suit  in  the 
court  having  jurisdiction  thereof  in  the  county  where  the 


Oil  and  Gas  Laws  91 

claims  are  located,  his  protest  shall  constitute  no  further 
barrier  to  the  issuance  of  patent.  A  certified  copy  of  the 
petition  or  a  certificate  of  the  clerk  of  the  court  where 
suit  is  pending  shall  be  sufficient  evidence  to  the  commis- 
sioner of  the  pendency  of  the  suit  and  of  the  date  of  filing 
said  suit.  When  the  land  in  controversy  lies  partly  in  two 
counties,  suit  may  be  brought  in  either.  More  than  one 
claim  shall  not  be  embraced  in  the  same  patent  or  appli- 
cation. The  suits  here  provided  for  shall  be  entitled  to 
precedence  of  trial  on  the  docket. 

Section  12.  When  a  location  has  been  made  in  land 
disposed  of  by  the  State  since  the  passage  of  an  act 
for  disposition  of  minerals  on  the  land  embraced  in  the 
first  section  of  this  act,  approved  April  14,  1883,  if  such 
location  was  made  subsequent  to  the  disposition  by  the 
State  of  such  lands,  and  the  locator  or  his  assignees  have 
not  abandoned  said  claim,  but  is  working  it  in  good  faith, 
locator  and  his  assignees  shall  nevertheless  be  entitled  to 
the  mineral  and  to  the  use  of  the  superficial  area  as  in 
other  cases;  and  if  the  case  is  such  that  the  fee  in  the 
land  cannot  pass  by  patent,  a  patent  may  issue  to  all  the 
minerals  in  the  claims,  and  shall  be  a  license  from  the 
State  to  enter  upon  and  work  said  claim  and  extract  the 
mineral  therefrom.  In  case  provided  for  in  this  section 
when  the  fee  does  not  pass,  the  price  shall  be  twenty  dol- 
lars per  acre,  and  the  locator  or  his  assignee  shall  in  addi- 
tion pay  to  the  owner  of  the  land  in  fee  the  fair  value  of 
the  land  so  taken  up  by  his  claim,  and  roads  and  fences 
necessary  to  give  him  ingress  and  egress  thereto,  and  be 
liable  for  any  damages  which  may  result  to  owner  of  the 
land  in  fee.  All  other  provisions  of  this  act  shall  apply  to 
said  location. 

Section  13.  All  claims  upon  which  patent  has  not 
been  applied  for  within  five  years  next  after  the  applica- 
tion for  survey,  or  which  have  not  been  surveyed  and  the 
field  notes  returned  to  the  general  land  office  within  the 
time  prescribed  therefor  as  hereinbefore  provided,  or  upon 
which  the  assessment  work  has  not  been  done,  an  affidavit 
therefor,  filed  as  provided  by  this  act,  shall  be  and  are  de- 
clared forfeited  without  judicial  action  of  any  kind  and 
subject  to  location  as  originally,  but  not  by  any  one  inter- 


92  Oil  and  Gas  Laws 

ested  in  the  claim  at  the  time  of  forfeiture;  and  any  loca- 
tion for  or  on  behalf  of  any  such  party  shall  be  wholly 
void.  Whenever  any  such  claim  shall  be  relocated,  the 
locators  and  each  of  them  shall  make  affidavit  that  the 
location  is  made  without  any  contract  or  agreement  of  any 
kind  that  any  of  the  parties  owning  an  interest  in  the 
location  before  relocation  has  or  is  to  have  any  interest  in 
the  same.  In  all  other  cases  where  affidavit  is  required  by 
this  act  it  may  be  made  by  one  or  more  of  the  parties 
cognizant  of  the  facts. 

Section  14.  No  claim  which  has  been  forfeited  for 
any  cause  shall  be  subject  to  relocation  for  a  period  of 
thirty  days  next  thereafter ;  and  the  party  owning  the 
s^nie  may  apply  to  the  land  commissioner  within  that  time 
for  relief,  and  if  it  appears  to  him  from  the  proof  sub- 
mitted that  the  forfeiture  was  not  occasioned  by  the  negli- 
gence of  the  owner,  but  by  circumstances  which  he  could 
not  reasonably  control,  the  commissioner  may,  within  that 
time,  in  his  discretion,  grant  relief  against  the  forfeiture, 
and  if  he  grants  such  relief  he  shall  at  ouv'^e  forward  his 
order  to  that  effect  to  the  surveyor,  who  shall  file  the  same 
for  record  in  his  office. 

Section  15.  Whenever  any  application  shall  be  made 
to  buy  or  obtain  title  to  any  of  the  lands  embraced  in  sec- 
tion one  of  this  act,  except  where  the  application  is  made 
under  this  act,  the  applicant  shall  make  oath  that  there  is 
not,  to  the  best  of  his  knowledge  and  belief,  any  of  the 
mineral  embraced  in  this  act  thereon,  and  when  the  com- 
missioner has  any  doubt  in  relation  to  the  matter  he  shall 
forbear  action  until  he  is  satisfied.  And  any  sale  or  dis- 
position of  said  lands  shall  be  understood  to  be  with  a 
reservation  of  the  mineral  thereon  to  be  subject  to  loca- 
tion as  herein  provided. 

Section  16.  That  claims  usually  called  placers,  in- 
cluding all  forms  of  metallic  deposits,  excepting  veins  of 
quartz  or  rock  in  place,  shall  be  subject  to  entry  and 
patent  under  like  circumstances  and  conditions,  and  upon 
similar  proceedings  as  are  provided  for  vein  or  lode  claims. 
All  placer  claims  located  shall  conform  as  near  as  practi- 
cable with  existing  surveys  and  their  subdivisions,  and  no 
such  location  shall  include  more  than  forty  acres  for  each 


Oil  and  Gas  Laws  93 

individual  claimant,  and  shall  not  exceed  three  hundred 
and  twenty  acres  for  any  association  of  persons.  The 
price  which  shall  be  paid  for  such  placer  shall  not  be  less 
than  ten  dollars  per  acre,  together  with  all  costs  of  pro- 
ceedings as  before  provided. 

Section  17.  When  non-mineral  land,  not  contiguous 
to  the  vein  or  lode,  is  used  by  the  prospector  of  such  vein 
or  lode  for  mining  or  milling  purposes,  such  non-adjacent 
surface  ground  may  be  embraced  and  includes  in  an  appli- 
cation for  a  patent  for  such  vein  or  lode,  and  the  same 
may  be  patented  therewith  subject  to  the  same  preliminary 
lequirements  as  to  survey  and  notice  as  are  applicable  to 
veins  or  lodes ;  but  no  location  of  such  non  adjacdit  lands 
shall  exceed  ten  acres,  and  payment  for  the  same  must  be 
made  at  the  same  rate  as  fixed  by  this  act  for  the  super- 
ficies cf  the  lode.  The  owner  of  a  quartz  mill  or  reduc- 
tion works,  not  owning  a  mine  in  connection  therewith, 
may  also  receive  a  patent  for  a  mill  site  as  provided  in 
this   section. 

Section  18.  Any  owner  or  worker  of  mining  claim 
under  this  act  is  authorized  to  fell  and  remove  for  build- 
ing and  mining  purposes  any  timber  or  any  trees  growing 
or  being  upon  unoccupied  lands  as  described  in  section 
one,  said  lands  being  mineral  and  subject  to  entry  only  as 
mineral  lands,  under  such  rules  and  regulations  as  may 
be  prescribed  for  the  protection  of  timber  and  under- 
growth upon  such  lands  and  for  other  purposes. 

Section  19.  The  great  importance  of  the  mining  in- 
terest of  the  state,  and  the  uncertainty  existing  by  reason 
of  the  abolishment  of  the  land  board,  causes  confusion  in 
our  mining  laws,  and  creates  an  emergency,  and  an  im- 
perative necessity  exists  requiring  the  suspension  of  the 
constitutional  rule  requiring  bills  to  be  read  on  three  sev- 
eral days  be  suspended,  and  said  rule  is  so  suspended, 
and  this  act  shall  take  effect  and  be  in  force  from  and 
after  its  passage,  and  it  is  so  enacted.  All  laws  in  conflict 
with  this  act  are  hereby  repealed. 

Approved,  March  29,  1889. 


94  Oil  and  Gas  Laws 

GENERAL  LAWS  OF  TEXAS 
24th  Leg.  1895,  Page  197 

CHAP.  127.— [S.  B.  No.  175.]  An  Act  to  better  and 
more  fully  promote  the  development  of  the  mining  re- 
sources of  Texas,  and  to  repeal  all  laws  in  conflict  with 
the  provisions  of  this  Act. 

Section  1.  Be  it  enacted  by  the  Legislature  of  the 
State  of  Texas:  That  all  public  school,  university,  asy- 
lum and  public  lands  specially  included  under  the  operation 
of  this  Act,  all  the  lands  now  owned  by  the  State  situated 
within  the  reservation  known  as  the  "Pacific  Reservation," 
which  were  taken  off  the  market  and  reserved  from  sale 
by  an  Act  approved  January  22,  1883,  containing  valuable 
mineral  deposits,  are  hereby  reserved  from  sale  or  other 
disposition,  except  as  herein  provided,  and  are  declared 
free  and  open  to  exploration  and  purchase  under  regula- 
tions prescribed  by  law,  by  citizens  of  the  United  States 
and  those  who  have  declared  their  intention  of  becoming 
such :  Provided,  that  all  who  have  located  and  recorded 
valid  claims  under  previous  valid  laws  and  have  not  aban- 
doned same,  but  are  engaged  in  developing  same,  shall  have 
a  prior  preference  right  for  ninety  days  after  the  passage  of 
this  Act  in  which  to  relocate  same  under  this  Act. 

Section  2.  It  shall  be  the  duty  of  the  Commissioner 
of  the  General  Land  Office  immediately  upon  the  passage 
of  this  Act  to  have  a  map  made  showing  the  location  of 
all  public  school,  university,  asylum  and  public  lands  which 
are  unsold  at  that  date,  and  it  shall  be  the  duty  of  the  Geo- 
logical and  Mineralogical  Survey  to  examine  all  such  lands 
as  soon  as  practicable  thereafter,  and  to  designate  such 
tracts  as  are  apparently  mineral  bearing  as  mineral  lands 
for  the  purposes  of  this  Act.  If  mineral  lands  are  after- 
wards claimed  to  exist  at  other  locations  than  are  so  desig- 
nated they  shall  also  be  examined  and  classified  accord 
ingly. 


Oil  and  Gas  Laws  95 

Section  3.  It  shall  be  the  duty  of  the  Commissioner 
of  the  General  Land  Office  to  unite  a  suitable  number  of 
these  mineral  locations  into  mining  districts,  in  each  of 
which  shall  be  a  surveyor,  who  must  either  be  the  surveyor 
of  the  district  or  county  or  a  regular  appointed  deputy  and 
an  officer  qualified  to  administer  oaths. 

Section  4.  A  mining  claim  upon  veins  or  lodes  of  quartz 
or  other  rocks  in  place  bearing  silver,  gold,  cinnabar,  lead, 
tin,  copper  and  other  valuable  metals,  excluding  deposits  of 
kaolin,  baryta,  salt,  marble,  fire  clay,  iron  ore,  coal,  oil,  natu- 
ral gas,  gypsum,  nitrates,  mineral  paints,  asbestos,  marls,  nat- 
ural cement,  clay,  onyx,  mica,  precious  stones  or  any  other 
non-metallic  mineral,  and  stone  valuable  for  ornamental  or 
building  purposes  or  other  valuable  building  material,  may 
equal  but  shall  not  exceed  one  thousand  five  hundred  feet 
along  the  mine  or  vein  or  lode.  No  such  claim  shall  ex- 
ceed twenty-one  acres  in  total  area.  The  end  lines  of  each 
claim  shall  be  parallel  to  each  other,  and  all  claims  shall 
be  in  the  form  of  a  parallelogram  or  square,  unless  such 
form  is  prevented  by  adjoining  rights  or  boundaries  of  the 
section  in  which  the  claim  lies.  The  locator  under  this 
Act  shall  be  entitled  to  the  use  of  all  the  superficial  area  be- 
tween the  enclosing  lines  of  the  claim,  and  to  all  minerals 
thereon  between  the  side  and  end  lines,  extending  down- 
wards vertically,  until  the  rights  secured  by  posting  are 
forfeited  as  provided;  and  in  all  conflicts  priority  of  loca- 
tion shall  decide. 

Section  5.  The  locators  of  any  mining  claim  shall 
post  up  at  the  center  of  one  of  the  end  lines  of  the  same 
a  written  notice,  stating  the  name  of  the  location  and  of  the 
claim  and  date  of  posting,  and  describe  the  claim  by  giv- 
ing the  number  of  feet  in  length  and  width  and  the  direction 
the  claim  lies  in  length  from  the  notice,  together  with  the 
section,  if  known,  and  the  county,  and  shall  place  stone 
monuments  at  the  four  corners  and  otherwise  describe 
the  corners  so  that  they  can  be  readily  found.  The  notice 
shall  be  placed  in  a  conspicuous  place  so  it  can  be  readily 
seen. 

Section  6.  The  locator  shall,  within  three  months 
after  the  date  of  posting  the  required  notice,  sink  a  shaft 


96  Oil  and  Gas  Laws 

at  least  ten  feet  in  depth  by  four  feet  square,  or  a  tunnel 
of  the  same  dimensions  ten  feet  in  length,  or  an  open  cross 
cut  twenty  feet  in  length,  four  feet  or  more  wide  and  ten 
feet  in  depth  at  its  shallowest  part,  and  shall  within  said 
time  file  with  the  county  surveyor  or  the  district  surveyor 
of  the  county,  as  the  case  may  be,  an  application  in  writing 
for  the  survey  of  the  claim,  which  application  shall  be  ac- 
companied by  a  fee  of  twenty  dollars,  unless  its  tender  is 
waived,  and  also  with  an  affidavit  attached  thereto  that  the 
required  work,  signifying  that  it  has  been  done,  and  that 
the  locators  have  found  valuable  minerals  on  the  claim ; 
and  the  affidavit  shall  state  the  date  of  the  first  posting  of 
the  notice  on  the  claim  by  the  appHcants,  and  further,  that 
the  notice  has  not  been  post  dated  or  changed  in  its  date. 
Upon  receiving  said  application  and  fee  the  surveyor  shall 
record  the  application,  together  with  the  affidavit,  and  he 
shall  thereupon  forthwith  proceed  to  survey  said  claim,  and 
forward  the  field  notes  to  the  Commissioner  of  the  Gen- 
eral Land  Office  within  thirty  days  after  filing  the  applica- 
tion, in  default  of  which  he  shall  pay  the  aggrieved  party 
such  damages  as  he  may  sustain,  and  in  addition  thereto 
shall  be  deemed  guilty  of  a  misdemeanor,  and  on  convic- 
tion fined  not  less  than  twenty  dollars  nor  more  than  one 
hundred  dollars,  and  it  shall  be  the  duty  of  the  applicants 
to  see  that  the  field  notes  are  so  returned.  The  fee  of 
twenty  dollars  shall  cover  all  the  services  provided  for  in 
this  section.  In  all  other  cases  enumerated  in  this  Act  the 
fee  shall  be  the  same  allowed  county  clerks  for  similar 
services. 

Section  7.  Annually  after  the  filing  of  the  application 
for  a  survey  as  hereinbefore  provided,  the  claimant  shall, 
until  after  the  application  is  made  for  a  patent,  as  herein- 
after provided,  do  one  hundred  dollars'  worth  of  work  in 
developing  each  claim;  but  where  claims  adjoin,  the  amount 
of  work  may  be  done  on  one  for  all  belonging  to  the  same 
party.  The  value  of  such  shall  be  estimated  at  what  it 
could  be  contracted  for  at  a  fair  cash  price,  but  the  cost 
of  tools  and  implements  and  the  expense  of  going  to  and 
returning  from  the  mine  shall  not  be  included  in  said  esti- 
mate.    Within   one   month   after   the   expiration    of   each 


Oil  and  Gas  Laws  97 

year  the  owner  shall  make  and  file  with  the  surveyor  his 
affidavit  setting  forth  specifically  what  the  work  consists 
of  in  detail,  and  the  value  thereof.  Upon  the  failure  of 
any  one  of  several  owners  to  contribute  his  proportion  of 
the  expenditures  required  in  this  Act  within  the  necessary 
time,  the  co-owners  who  have  performed  the  labor  or  made 
the  improvements  or  paid  the  fees  or  other  expenditures 
required  in  this  Act,  may  at  the  expiration  of  the  year  in 
which  the  same  is  to  be  done,  give  notice  in  writing  or  no- 
tice by  publication  in  a  newspaper  published  in  the  county 
where  the  claim  is,  if  any;  if  none  in  such  county,  then  in 
the  newspaper  published  nearest  the  mine,  for  at  least  once 
a  week  for  ninety  days.  If  after  such  personal  notice  in 
writing  or  by  publication  such  delinquent  shall  fail  or  re- 
fuse to  contribute  his  proportion  of  the  expenditure  re- 
quired by  this  Act,  his  interest  in  the  claims  shall  become 
the  property  of  his  co-workers  who  have  made  the  required 
expenditures.  An  affidavit  by  the  co-owners  forfeiting  the 
interest  of  such  delinquent  shall,  when  recorded  in  the  of- 
fice of  the  proper  surveyor,  be  sufficient  evidence  of  such  de- 
linquency. 

Section  8.  That  when  a  tunnel  is  run  for  the  develop- 
ment of  a  vein  or  lode  or  for  the  discovery  of  mines,  the 
owner  of  such  tunnel  shall  have  the  right  of  possession  of 
all  veins  or  lodes  within  two  thousand  feet  of  the  face  of 
such  claim  on  the  line  thereof,  not  previously  known  to 
exist,  discovered  in  such  tunnel  to  the  same  extent  as  if 
discovered  from  the  surface ;  and  locations  on  the  line  of 
such  tunnel  or  veins  or  lodes  not  appearing  on  the  surface 
made  by  other  parties  after  the  commencement  of  the  tun- 
nel and  while  the  same  is  being  prosecuted  with  reasonable 
diligence  shall  be  invalid ;  but  failure  to  prosecute  the  work 
in  the  tunnel  for  six  months  shall  be  considered  as  an  aban- 
donment of  the  right  of  all  undiscovered  veins  on  the  line 
of  said  tunnel. 

Section  9.  Whenever  the  owners  of  any  mining  claim 
shall  desire  a  patent,  they  shall,  within  five  years  after  the 
filing  of  the  application  for  survey,  file  their  application 
for  a  patent  upon  their  claim  with  the  Commissioner  of  the 
General  Land  Office,  accompanied  by  the  receipt  of  the 


98  Oil  and  Gas  Laws 

State  Treasurer  showing  that  twenty-five  dollars  per  acre 
has  been  paid  by  the  appUcant  for  patent  to  the  State 
Treasurer.  Whereupon  such  patent  shall  issue  unless  pro- 
test is  filed  as  hereinafter  provided  for  in  section  11. 

Section  10.  Within  twelve  months  after  the  filing  of 
the  affidavit  hereinafter  provided  for,  any  person  or  asso- 
ciation of  persons  qualified  as  required  by  section  1  of  this 
Act,  shall  have  the  right  to  purchase  and  obtain  patent  by 
compliance  with  this  Act,  or  any  of  the  lands  of  the  State 
which  are  specified  or  included  in  section  1  of  this  Act. 
containing  valuable  deposits  of  kaolin,  baryta,  salt,  marble, 
fire  clay,  iron  ore,  coal,  oil,  natural  gas,  gypsum^  nitrates, 
mineral  paints,  asbestos,  marl,  natural  cement,  clay,  onyx, 
mica,  precious  stones  or  any  other  non-metallic  mineral 
and  stones  valuable  for  ornamental  or  building  purposes 
or  other  valuable  building  material,  in  legal  subdivisions, 
in  quantity  not  exceeding  one  section  :  Provided,  that  where 
any  such  parties  shall  have  heretofore  expended,  or  shall 
hereafter  expend,  five  thousand  dollars  in  developing  the 
aforesaid  mineral  resources  of  any  of  said  lands,  such  party 
shall  have  the  right  to  buy  one  additional  section  and  no 
more,  and  to  include  in  the  purchase  any  section  or  part 
thereof  on  which  the  work  may  have  been  done.  The  land 
so  purchased  may  be  in  different  sections,  and  all  embraced 
in  one  or  more  obligations,  not  to  exceed  the  quantity 
stated.  The  purchaser  shall  pay  not  less  than  fifteen  dol- 
lars per  acre  where  the  land  shall  be  situated  ten  miles  or 
less  of  any  railroad  in  operation,  and  not  less  than  ten  dol- 
lars per  acre  where  the  land  is  over  ten  miles  from  such 
railroad,  one-tenth  of  the  purchase  money  to  be  paid  in 
cash  to  the  State  Treasurer  on  or  before  the  expiration  of 
the  twelve  months  aforesaid ;  and  the  purchasers  shall  file 
the  Treasurer's  receipt  with  the  Commissioner  of  the  Gen- 
eral Land  Office,  together  with  an  obligation  to  pay  the 
State  of  Texas  the  remainder  in  nine  equal  annual  install- 
ments, with  interest  at  four  per  cent  per  annum  from  date, 
subject  to  forfeiture  as  in  other  cases;  and  all  said  lands 
are  reserved  from  sale  or  other  disposition  than  under  this 
Act;  and  where  application  is  made  to  buy  any  of  the 
lands  herein  named  except  under  this  Act,  the  purchaser 


Oil  and  Gas  L,aws  99 

shall  swear  that  there  are  none  of  the  minerals  named  in 
this  Act  on  said  lands,  so  far  as  he  knows  or  has  reason  to 
believe  or  does  believe :  Fromded,  further,  that  any  party 
hereinbefore  named,  who  shall  prior  to  the  passage  of  this 
Act  have  been  the  first  to  work  on  said  lands  for  the  de- 
velopment of  said  mineral  resources,  and  who  has  not  aban- 
doned said  work,  and  is  qualified  at  passage  of  this  Act  to 
buy,  shall  have  a  prior  preference  right  of  doing  so  for 
thirty  days  after  this  Act  goes  into  effect :  Provided,  fur- 
ther, this  section  of  this  Act  shall  not  authorize  the  sale  of 
lands  containing  valuable  deposits  of  gold,  silver,  lead,  cin- 
nabar, copper  or  other  valuable  metal :  Provided,  further, 
that  any  person  desiring"  to  acquire  any  lands  under  the 
provisions  of  this  section  shall  have  the  right  to  prospect 
said  land  for  a  period  of  twelve  months  before  making  any 
payment  thereon,  upon  condition  that  said  prospector  shall 
file  with  the  proper  surveyor  his  affidavit  in  writing,  setting 
forth  that  he  has  gone  upon  the  land  in  good  faith  with  the 
intention  of  purchasing  the  same  under  the  provisions  of 
this  section,  and  in  said  affidavit  give  a  reasonable  descrip- 
tion of  said  land.  After  the  filing  of  said  affidavit  the  said 
surveyor  shall  immediately  forward  same  to  the  Commis- 
sioner of  the  General  Land  Office,  who  shall  take  said  sec- 
tion off  the  market  until  the  expiration  of  said  twelve 
months  after  the  filing  of  said  affidavit  with  the  surveyor. 

Section  11.  Any  person  desiring  to  contest  the  issu- 
ance of  patent  may  do  so  by  filing  with  the  Commissioner  of 
the  General  Land  Office  a  protest  setting  forth  the  grounds 
of  objection  generally,  and  that  protestant  has  an  interest 
in  the  subject  matter,  which  protest  shall  also  state  that  the 
same  is  presented  in  good  faith  and  not  to  injure  or  delay 
the  appHcants  or  any  of  them,  and  the  same  shall  be  veri- 
fied by  affidavit.  Whereupon  it  shall  be  the  duty  of  the 
Commissioner  to  withhold  patent  until  the  controversy  is 
ended :  Provided,  that  if  the  protestant  shall  not  within 
thirty  days  after  filing  his  protest  institute  suit  in  the  court 
having  jurisdiction  thereof  in  the  county  where  the  claims 
are  located,  his  protest  shall  constitute  no  further  barrier 
to  the  issuance  of  patent.     A  certified  copy  of  the  petition 


100  Oil  and  Gas  Laws 

or  a  certificate  of  the  clerk  of  the  court  where  suit  is  pend- 
ing shall  be  sufficient  evidence  to  the  Commissioner  of  the 
pendency  of  the  suit,  and  of  the  date  of  filing  said  suit. 
When  the  land  in  controversy  lies  partly  in  two  counties 
suit  may  be  brought  in  either.  More  than  one  claim  shall 
not  be  embraced  in  the  same  patent  or  application.  The 
suits  here  provided  for  shall  be  entitled  to  precedence  of 
trial  on  the  docket. 

Section  12.  All  claims  upon  which  patent  has  not  been 
applied  for  within  five  years  next  after  the  application 
for  survey,  or  which  have  not  been  surveyed  and  the  field 
notes  returned  to  the  General  Land  Office  within  the  time 
prescribed  therefor  as  hereinbefore  provided,  or  upon 
which  the  assessment  work  has  not  been  done,  an  affidavit 
therefor  filed  as  provided  by  this  Act,  shall  be  and  are  de- 
clared forfeited  without  judicial  action  of  any  kind,  and 
subject  to  location  as  originally,  but  not  by  any  one  inter- 
ested in  the  claim  at  time  of  forfeiture,  and  any  location 
for  or  on  behalf  of  any  such  party  shall  be  wholly  void. 
Whenever  any  such  claim  shall  be  relocated,  the  locators 
and  each  of  them  shall  make  affidavit  that  the  location  is 
made  without  any  contract  or  agreement  of  any  kind  that 
any  of  the  parties  owning  an  interest  in  the  location  before 
the  relocation  has  or  is  to  have  any  interest  in  the  same. 
In  all  other  cases  where  affidavit  is  required  by  this  Act 
it  may  be  made  by  one  or  more  of  the  parties  cognizant  of 
the  facts. 

SECTION  13.  No  claim  which  has  been  forfeited  for  any 
cause  shall  be  subject  to  relocation  for  a  period  of  thirty 
days  next  thereafter,  and  the  party  owning  the  same  may 
apply  to  the  Land  Commissioner  within  that  time  for  relief, 
and  if  it  appear  to  him  from  the  proof  submitted  that  the 
forfeiture  was  not  occasioned  by  the  negligence  of  the 
owner,  but  by  circumstances  which  he  could  not  reasonably 
control,  the  Commissioner  may  within  that  time,  in  his  dis- 
cretion, grant  relief  against  the  forfeiture,  and  if  he  be 
granted  such  relief  he  shall  at  once  forward  his  order  to 
that  effect  to  the  surveyor,  who  shall  file  the  same  for  rec- 
ord in  his  office. 


Oil  and  Gas  Laws  101 

Section  14.  Whenever  any  application  shall  be  made  to 
buy  or  obtain  title  to  any  of  the  lands  embraced  in  section 
1  of  this  act,  except  where  the  application  is  made  under  this 
act,  the  applicant  shall  make  oath  that  there  is  not,  to  the 
best  of  his  knowledge  and  belief,  any  of  the  minerals  em- 
braced in  this  act  thereon,  and  when  the  Commissioner  has 
any  doubt  in  relation  to  the  matter  he  shall  forbear  action 
until  he  is  satisfied.  Any  such  sale  or  disposition  of  said 
lands  shall  be  understood  to  be,  with  the  reservation  of  the 
minerals  thereon,  to  be  subject  to  location  as  herein  pro- 
vided. 

Section  15.  That  claims  usually  called  placers,  includ- 
ing all  forms  of  metallic  deposits,  excepting  veins  of  quartz 
or  rock  in  place,  shall  be  subject  to  entry  and  patent  under 
like  circumstances  and  conditions  and  upon  similar  proceed- 
ings as  are  provided  for  vein  or  lode  claims.  All  placer 
claims  located  shall  conform  as  near  as  practicable  with 
existing  surveys  and  their  subdivisions,  and  no  such  loca- 
tion shall  include  more  than  forty  acres  for  each  individual 
claimant,  and  shall  not  exceed  three  hundred  and  twenty 
acres  for  any  association  of  persons.  The  price  which 
shall  be  paid  for  such  placer  shall  not  be  less  than  ten  dollars 
per  acre,  together  with  all  costs  of  proceedings  as  before 
provided. 

Section  16.  Where  non-mineral  land  not  contiguous 
to  the  vein  or  lode  is  issued  by  the  prospector  of  such 
vein  or  lode  for  mining  or  milling  purposes,  such  non- 
adjacent  surface  ground  may  be  embraced  and  included  in 
an  application  for  a  patent  for  such  vein  or  lode,  and  the 
same  may  be  patented  therewith  subject  to  the  same 
preliminary  requirements  as  to  survey  and  notice  as  are 
applicable  to  veins  or  lodes ;  but  no  location  of  such  non- 
adjacent  lands  shall  exceed  ten  acres,  and  payment  for  the 
same  must  be  made  at  the  same  rate  as  fixed  by  this  Act 
for  the  superficies  of  the  lode.  The  owner  of  a  quartz 
mill  or  reduction  works,  not  owning  a  mine  in  connection 
therewith,  may  also  receive  a  patent  for  a  mill  site,  as 
provided  in  this  section. 

Section  17.  Any  owner  or  worker  of  mining  claim 
under  this  Act  is  authorized  to  fell  and  remove  for  building 


102  Oil  and  Gas  Laws 

and  mining  purposes  any  timber  or  any  tree  growing  or 
being  upon  unoccupied  lands  as  described  in  section  1,  said 
lands  being  mineral  and  subject  to  entry  only  as  mineral 
lands,  under  such  rules  and  regulations  as  may  be  pres- 
cribed for  the  protection  of  timber  and  undergrowth  upon 
such  lands  and  for  other  purposes. 

Section  18.  Nothing  in  this  Act  shall  ever  be  so  con- 
strued as  to  either  destroy,  invalidate  or  impair  any  valid 
claim,  right  or  interest  existing  in,  to  or  concerning  any 
lands  whatever  at  the  passage  of  this  Act,  of  any  pre- 
emptor,  purchaser,  claimant,  actual  settler,  locator  or  other 
person  whatsoever. 

Section  19.  The  net  proceeds  of  all  sales  of  mining 
lands  under  the  provisions  of  this  Act  shall  inure  to  the 
benefit  of  the  State  and  the  respective  funds  for  w^hich 
the  lands  mentioned  in  section  1  of  this  Act  are  now  set 
apart  under  the  Constitution  and  the  laws  of  the  State, 
and  it  shall  be  the  duty  of  the  Comptroller,  State  Treasurer 
and  Commissioner  of  the  General  Land  Office  to  see  to  it 
and  have  said  proceeds  so  paid  rightly  placed  to  the  credit 
of  the  particular  and  proper  fund. 

Section  20.  For  the  purpose  of  effectually  carrying 
out  the  provisions  of  this  Act  all  county  or  district  survey- 
ors are  hereby  especially  authorized  and  empowered  to 
administer  oaths,  take  affidavits  and  make  certificates 
thereof :  Provided,  further,  that  all  laws  and  parts  of  laws 
in  conflict  with  this  Act,  or  any  part  thereof,  are  hereby 
especially  repealed. 

Section  21.  The  mining  interests  of  the  State  are  great 
and  important,  and  there  are  no  general  laws  free  from 
doubt  and  uncertainty  regulating  in  an  adequate,  general 
and  just  manner  the  mining  interest  of  the  whole  State; 
therefore,  an  imperative  public  necessity  and  emergency 
exists  for  the  passage  of  this  Act;  therefore  it  is  enacted 
that  the  constitutional  rule  requiring  bills  to  be  read  on  three 
several  days  be  suspended,  and  that  this  Act  take  effect  and 
be  in  force  from  and  after  its  passage,  and  it  is  so  enacted. 


Oil  and  Gas  Laws  103 

GENERAL  LAWS  OF  TEXAS,  32ND  LEGISLATURE, 

PAGE  409,  1913. 

SCHOOL   LANDS— RELATING  TO   PROSPECTING 

AND  DEVELOPING  MINERALS  THEREON. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  All  public  school,  University,  Asylum  and 
the  other  public  lands,  fresh  water  lakes,  islands,  bays, 
marshes,  reefs,  and  salt  water  lakes,  belonging  to  the  State 
of  Texas,  and  all  lands  which  may  hereafter  be  so  owned 
and  all  lands  which  have  been  heretofore  sold  or  disposed 
of  by  the  State  of  Texas,  with  a  reservation  of  minerals  or 
mineral  rights  therein,  as  well  as  all  lands  which  may  here- 
after be  sold  with  reservation  of  minerals  or  mineral  rights 
therein,  and  lands  purchased  with  relinquishment  of  the 
minerals  therein,  shall  be  included  within  the  provisions  of 
this  Act  and  shall  be  open  to  mineral  prospecting,  mineral 
development  and  the  lease  of  mineral  rights  therein  in  the 
manner  herein  provided.  Only  citizens  of  the  United  States 
and  such  other  persons  as  have  heretofore  declared  or  shall 
hereafter  declare  their  intention  of  becoming  such  shall  be 
entitled  to  acquire  any  rights  under  this  Act.  It  is  declared 
to  be  the  policy  of  the  State  to  open  all  such  lands  to  min- 
eral prospecting  and  development  on  a  system  providing  for 
the  payment  into  the  State  Treasury  to  the  credit  of  the  per- 
manent free  school.  University.  Asylum  or  other  funds,  of 
certain  rents  and  royalties  upon  the  gross  output  of  any  min- 
erals or  mineral  product  thereon. 

Section  2.  Any  person  or  association  of  persons,  cor- 
porate or  otherwise,  desiring  to  obtain  the  right  to  prospeci 
for  and  develop  petroleum  oil  or  natural  gas  that  may  be  in 
any  of  the  surveyed  public  free  school  land.  University  o: 
Asylum  or  other  public  lands  of  the  State,  which  may  be  un- 
sold at  the  time  such  desire  is  made  known  as  herein  pro- 
vided, or  in  any  of  said  land  which  has  heretofore  been  sold 
with  the  reservation  of  minerals  therein  to  the  public  free 
school  fund  or  other  fund  and  such  of  said  land  as  has  here- 
tofore been  purchased  with  the  relinquishment  of  the  min- 
erals therein  by  the  purchaser,  or  in  any  of  said  land  that 
may  hereafter  be  sold  with  the  reservation  of  minerals 
herein,  also  in  any  of  the  fresh  water  lakes  owned  by  the 


104  Oil  and  Gas  Laws 

State  or  public  free  school  fund  or  other  fund,  and  also 
in  any  of  the  islands,  bays,  marshes,  reefs  and  salt  water 
lakes,  may  do  so  under  the  regulations,  terms  and  conditions 
of  this  Act,  together  with  such  rules  and  regulations  as  may 
be  adopted  relative  thereto  and  necessary  for  the  execu- 
tion of  the  purpose  of  this  Act  by  the  Commissioner  of 
the  General  Land  Office. 

Section  3.  One  desiring  to  obtain  the  right  to  prospect 
for  and  develop  petroleum  oil  or  natural  gas  that  may  be 
in  any  of  the  surveyed  lands  mentioned  herein  shall  first 
file  with  the  clerk  of  the  court  of  the  county  in  which  the 
area  desired,  or  a  portion  thereof,  is  situated,  or  with  the 
clerk  of  the  county  to  which  said  county  may  be  attached 
for  judicial  purposes,  a  separate  application  in  writing  for 
each  tract  applied  for,  designating  the  land  in  which  he 
desires  to  acquire  the  aforesaid  rights.  No  individual  or 
corporation  shall  be  awarded  exceeding  1280  acres  of  the 
public  lands  the  State  for  oil  or  gas  development  purposes, 
and  no  individual  or  corporation  shall  be  awarded  exceed- 
ing 200  acres  for  oil  and  gas  development  purposes  within 
ten  miles  of  any  producing  oil  or  gas  well.  The  said  1280 
acres  in  undeveloped  territory,  or  the  200  acres  within  ten 
miles  of  any  producing  oil  or  gas  well,  may  be  in  as  many 
different  tracts  of  land  of  fresh  water  lakes  as  the  appli- 
cant may  desire,  provided  the  applicant  correctly  describes 
the  land  or  fresh  water  lakes  desired  fc*-  development  pur- 
poses. The  lines  of  all  tracts  less  than  a  whole  survey  shall 
conform  to  the  exterior  of  the  lines  of  the  surv^ey  of  which 
it  may  be  a  part,  as  nearly  as  practicable.  The  said  clerk 
shall  file  and  record  the  application  or  applications  afore- 
said and  note  the  same  on  his  register  opposite  the  entry 
of  the  proper  survey  if  surveyed  or  in  his  record  book  if 
unsurveyed,  giving  the  time  of  filing,  and  the  applicant  shall 
file  such  application  in  the  General  Land  Office  together 
with  one  dollar  as  filing  fees  within  thirty  days  after  the 
date  it  was  filed  by  the  county  clerk. 

Section  4.  One  desiring  to  obtain  the  right  to  pros- 
pect for  and  develop  petroleum  oil  or  natural  gas  in  any 
of  the  States'  islands,  salt  water  lakes,  bays,  marshes,  reefs 
and  fresh  water  lakes  owned  by  the  State,  or  in  any  of  tlie 
unsurveyed  public  land,  shall  first  file  a  separate  written 


Oil  and  Gas  Laws  105 

application  for  each  tract  applied  for  with  the  county 
surveyor  of  the  county  in  which  the  area  or  a  part  of  same 
may  be  situated  or  the  county  to  which  said  county  may 
be  attached  for  surveying  purposes  giving  a  designation 
of  the  same  sufficient  to  identify  it.  The  surveyor  shall 
immediately  file  and  record  same,  giving  time  of  such  fil- 
ing, and  within  ninety  days  thereafter  he  shall  survey  and 
deliver  to  the  applicant  the  field  notes  and  original  applica- 
tion. Said  papers,  together  with  one  dollar  as  filing  fee. 
shall  be  filed  in  the  General  Land  Office,  within  one  hun- 
dred days  after  the  application  was  filed  with  the  county 
surveyor,  and  not  thereafter.  Locations  and  surveys  under 
this  Section  shall  not  exceed  1280  acres  in  undeveloped  ter- 
ritory and  not  exceeding  200  acres  within  ten  miles  of  a 
producing  gas  or  oil  well.  All  locations  and  surveys  un- 
der this  Section  shall,  if  practicable,  be  of  regular  form, 
but  in  every  case  the  line  or  lines  adjacent  to  other  surveys 
shall  conform  to  the  lines  of  such  adjacent  surveys.  If 
there  are  no  adjacent  surveys  the  surveyor  shall  connect 
such  survey  with  some  established  survey  on  the  main 
land. 

Section  5.  When  the  Commissioner  receives  an  ap- 
plication, or  application  and  field  notes,  as  provided  for  in 
the  two  preceding  sections,  within  the  time  required,  to- 
gether with  the  filing  fee  of  one  dollar,  he  shall  file  same. 
and  if,  upon  examination,  said  papers  are  found  to  be  cor- 
rect, and  in  compliance  with  this  Act,  and  if  the  status  of 
the  area  applied  for  is  within  the  provisions  herein,  the  ap- 
plicant shall  be  entitled  to  the  right  to  prospect  for  and 
develop  the  petroleum  oil  or  natural  gas  that  may  be  under 
the  surface  embraced  in  the  application  and  field  notes, 
and  as  evidence  of  such  right  the  Commissioner  shall  issue 
to  each  applicant  a  permit  after  the  applicant  shall  have 
compiled  with  the  conditions  hereinafter  imposed. 

Section  6.  Before  the  issuance  of  the  permit  provided 
for  in  the  preceding  section  the  applicant  shall  pay  to  the 
Commissioner  of  the  General  Land  Office  ten  cents  per  acre 
for  each  acre  embraced  in  the  application  and  field  notes. 
Thereupon  a  permit  shall  be  issued  to  the  applicant  confer- 
ring upon  him  an  exclusive  right  to  prospect  for  and  develop 
petroleum  oil  or  natural  gas  within  the  designated  area  for 


106  On   AND  Gas  Laws 

a  term  not  to  exceed  two  years.  Within  thirty  days  after 
the  expiration  of  the  first  year  the  owner  of  the  permit  shall 
pay  another  ten  cents  per  acre  as  in  the  first  instance.  Upon 
the  termination  of  the  period  for  which  the  original  permit 
was  granted  and  the  receipt  of  satisfactory  evidence  of  the 
compliance  with  the  conditions  prescribed  in  Section  7  of 
this  Act,  and  such  compliance  shall  not  have  led  to  the  dis- 
covery of  petroleum  oil  or  natural  gas  in  commercial  quan- 
tities, then  the  Commissioner  may  grant  an  extension  of  the 
permit  for  a  term  not  to  exceed  one  year  upon  the  payment 
by  the  applicant  or  his  successors  in  interest  of  an  additional 
fee  of  twenty-five  cents  per  acre.  No  extension,  however, 
shall  be  granted  unless  satisfactory  proof  of  an  effort  to- 
wards the  development  of  the  area  included  in  the  permit 
has  been  made  in  good  faith  and  the  expenditure  of  the  sum 
required  and  duly  submitted  as  set  forth  in  Section  7  of  this 
Act. 

Section  7.  Before  the  expiration  of  six  months  after 
the  date  of  the  permit  the  owner  of  said  permit  shall  in 
good  faith  commence  actual  work  necessary  to  the  physical 
development  of  said  area,  and  if  petroleum  oil  or  natural 
gas  is  not  developed  the  owner  or  manager  shall,  on  or  be- 
fore the  thirty  days  after  the  expiration  of  twelve  months 
from  the  date  of  the  permit  file  in  the  General  Land  Ofifiice 
a  sworn  statement  supported  by  two  disinterested,  credible 
witnesses  that  such  actual  work  was  begun  within  the  six 
months  aforesaid,  and  that  petroleum  oil  or  natural  gas  has 
not  been  discovered  in  commercial  quantities  and  that  a  bona 
fide  effort  to  develop  said  was  made  during  the  six  months 
{^receding  the  filing  of  said  statement  during  the  two  years 
covered  by  said  permit  the  owner  thereof  shall  expend  not 
less  than  four  thousand  dollars  in  a  bona  fide  effort  for  the 
development  of  such  area,  unless  such  area  has  sooner  been 
developed  or  abandoned.  The  owner  or  manager  shall, 
within  thirty  days  after  the  expiration  of  the  two  years 
from  the  date  of  the  permit,  filed  with  the  Commissioner  of 
the  General  Land  Office  a  sworn  statement  supported  by 
two  disinterested,  credible  witnesses  that  such  bona  fide 
effort  for  the  development  of  the  area  has  been  made,  stat- 
ing in  what  condition,  and  showing  the  expenditure  thereof. 
A  failure  to  file  either  of  the  sworn  statements  herein  pro- 


Oil  and  Gas  Laws  107 

vided  for  within  the  time  specified,  or  the  filing  of  a  state- 
ment untrue  or  false  in  material  matters,  or  the  failure  to 
expend  the  sum  named  in  a  bona  fide  efTort  toward  the  de- 
velopment of  the  area  or  areas,  shall  work  a  revocation  of 
said  permit  and  the  termination  of  the  rights  of  the  owner. 
Such  termination  shall  be  endorsed  by  the  Commissioner 
of  the  General  Land  Office,  upon  a  duplicate  copy  of  the 
permit  retained  in  the  General  Land  Oflfice.  Upon  the  ter- 
mination of  such  permit  the  area  shall  again  be  subject  to 
location  by  another  than  the  forfeiting  owner.  The  ex- 
penditure herein  required  for  development  purposes  may  be 
made  upon  one  or  more  contiguous  traf'tL-  embraced  in  a  per- 
mit and  shall  be  sufficient  for  the  entire  area  embraced  in 
one  such  permit.  The  amount  herein  required  to  be  ex- 
])ended  in  development  purposes  shall  be  required  on  each 
and  every  non-contiguous  area.  A  separate  permit  shall 
be  issued  for  each  non-contiguous  area,  but  may  contain  an 
entire  contiguous  area  of  two  or  more  adjacent  tracts  of 
land.  An  application  may  embrace  contiguous  portions  of 
different  tracts  or  surveys.  An  assignmtnt  by  deed  or  other 
form  of  transfer  and  also  a  lien  of  any  form  may  be  exe- 
cuted upon  any  claim  to  any  person,  association  of  persons, 
corporate  or  otherwise,  that  may  be  qualified  to  obtain  a 
permit  or  lease  in  the  first  instance ;  provided,  that  deed  or 
other  evidence  of  sale,  assignment  or  lien  shall  be  recorded 
in  the  county  where  the  property  or  a  part  thereof  is  situ- 
ated and  shall  be  filed  in  the  Land  Ofifice  within  sixty  days 
after  the  date  thereof,  accompanied  by  a  filing  fee  of  one 
dollar.  If  such  instrument  shall  not  be  filed  in  the  Land 
Ofifice  within  the  time  required  such  deed  or  evidence  of 
transfer  or  evidence  of  lien  shall  not  have  the  effect  to  con- 
vey the  property  nor  shall  the  obligations  incurred  therein 
be  enforceable. 

Sejction  8.  If  at  any  time  within  the  life  of  the  permit 
one  should  develop  petroleum  oil  or  natural  gas  in  commer- 
cial quantities  the  owner  or  manager  shall  file  in  the  Land 
Ofifice  a  statement  of  such  development  within  thirty  days 
thereafter,  and  thereupon  the  owner  of  the  permit  shall 
have  the  right  to  lease  all  or  part  of  the  area  included  in 
the  permit  upon  the  following  conditions : 


108  Oil  and  Gas  Laws 

(1)  An  application  and  a  first  payment  of  $2.00  per 
acre  for  a  lease  of  the  area  included  in  a  permit  shall  be 
made  to  the  Commissioner  of  the  General  Land  Office  with- 
in thirty  days  after  the  discovery  of  petroleum  oil  or  natu- 
ral gas  in  commercial  quantities. 

(2)  A  lease  may  be  granted  for  a  period  of  ten  years 
or  such  portion  thereof  as  the  applicant  may  desire  and  with 
the  option  of  renewal  or  renewals  for  an  equal  or  a  shorter 
period  upon  the  payment  of  a  cash  sum  of  $2.00  per  acre 
in  advance  on  the  entire  area  included  in  any  lease  and  an 
equal  sum  annually  in  advance  thereafter  during  the  life  of 
such  lease,  and  in  addition  thereto  the  owner  of  such  lease 
shall  pay  a  sum  of  money  equal  to  a  royalty  of  one-eighth 
of  the  value  of  the  gross  production  of  petroleum  oil. 

(3)  The  owner  of  a  permit  shall  not  take,  carry  away 
or  sell  any  petroleum  oil  or  natural  gas  found  in  any  area 
before  such  owner  .ihall  have  obtained  a  lease  therefor; 
provided,  such  owner  may  use  for  fuel  such  portion  of  said 
substances  as  may  be  necessary  for  the  continued  develop- 
ment of  the  area  without  accounting  therefor.     In  addition 

to  the  $2.00  per  acre  annually  in  advance,  the  owner  of  a 
gas  well  shall  pay  a  sum  of  money  equal  to  10  per  cent,  of 
the  meter  output  of  all  gas  sold.  The  said  royalty  on  petrole- 
um oil,  or  natural  gas,  shall  be  paid  to  the  Commissioner  of 

the  General  Land  Office  monthly  during  the  life  of  the  lease. 
In  all  such  payments  the  owner  or  manager  shall  accompany 
the  remittance  with  a  sworn  staatement  of  the  amount  pro- 
duced, and  the  market  price  of  the  output,  and  a  copy  of  any 
pipe  or  pipe  lines  or  tank  receipt,  check  or  memoranda  of 
amount  put  out  or  into  such  lines  or  tanks.  The  books  and 
accounts  and  the  receipts  and  discharges  of  all  lines,  pipe 
lines  or  tanks  and  gas  lines  and  gas  pipes,  and  all  other  mat- 
ters pertaining  to  the  production,  transportation  and  mar- 
keting of  the  output  shall  be  open  to  the  examination  and 
inspection  at  all  times  by  the  Commissioner  of  the  General 
Land  Office  or  his  representative  or  any  other  representa- 
tive of  the  State.  The  value  of  any  unpaid  royalty  or  royal- 
ties and  any  sum  or  sums  due  to  the  State  upon  any  lease 
contract  shall  become  a  prior  lien  upon  all  production  of 


Oil  and  Gas  Laws  109 

f>etroIeum  oil  or  natural  gas  produced  upon  the  leased  areas 
to  secure  the  payment  of  any  royalties  and  sums  due  the 
State. 

Section  9.  In  the  event  any  land  or  water  included 
within  the  operation  of  this  Act  has  heretofore  been  or  may 
hereafter  be  sold  by  the  State  with  the  reservation  of  min- 
erals therein,  or  has  been  purchased  by  one  with  the  waiver 
of  mineral  rights,  such  land  shall  be  subject  to  prospect  and 
lease  as  set  forth  in  this  Act,  but  the  owner  of  the  permit 
or  lease  shall  pay  to  the  owner  of  the  surface  of  the  land 
twenty-cents  per  acre  per  annum  in  advance  during  the  life 
of  the  permit  or  lease  and  the  first  payment  shall  be  paid 
to  the  Commissioner  of  the  General  Land  Office,  for  the 
use  of  the  owner  of  the  surface,  prior  to  the  issuance  of 
such  permit,  and  said  sum  so  paid  to  the  owner  of  the  sur- 
face rights  shall  be  in  full  compensation  for  all  damages 
to  such  surface  by  reason  of  the  ingress  and  egress  and 
operation  necessary  to  development  and  the  operation  under 
the  permit  or  lease;  provided,  that  if  the  owner  or  lessee 
of  the  surface  will  not  accept  the  payment  of  twenty  cents 
per  acre  per  annum  as  above  provided,  and  the  lessee  of  the 
mineral  rights  cannot  agree  with  such  owner  or  lessee  of 
the  surface  rights  on  the  compensation  to  be  paid  for  the 
use  of  the  damages  to  such  surface  rights,  then  the  right 
thereto  and  the  ingress  and  egress  from  such  mine  or  min- 
ing claim  may  be  acquired  by  condemnation  as  hereinafter 
provided. 

Section  10.  No  person,  association  of  persons,  corpo- 
rate or  otherwise,  shall  hold  or  own  at  one  time  by  permit 
or  lease,  direct  or  through  assignment,  nor  hold  or  own  a 
controlling  interest  in  more  than  two  sections  of  640  acres 
each,  more  or  less,  of  surveyed  school  land,  University,  Asy- 
lum or  other  public  land,  nor  more  than  1280  acres  of 
islands,  lakes,  bays,  marshes,  reefs,  or  unsurveyed  school, 
University  or  Asylum  or  other  public  land  in  any  undevel- 
oped field  nor  more  than  two  hundred  acres  within  ten  miles 
of  any  producing  oil  or  gas  well. 

Section  11.  A  person  or  association  of  persons,  cor- 
porate or  otherwise,  applying  for  a  permit  or  lease  shall  file 
with  the  application  a  sworn  statement  showing  what  inter- 


110  Oil  and  Gas  Laws 

est,  if  any,  the  applicant  or  each  of  the  members  of  the  asso- 
ciation or  each  stockholder  in  the  corporation  may  hold  in 
any  other  permit  or  lease  issued  by  the  State.  When  the 
Commissioner  is  satisfied  that  the  apphcant  is  entitled  to  such 
permit  or  lease  he  shall  issue  the  permit  for  a  term  not  to 
exceed  two  years,  and  the  lease  may  be  issued  for  such  time 
as  the  applicant  may  elect,  not  to  exceed  ten  years,  with  the 
right  of  a  renewal  or  renewals  upon  such  terms  and  condi- 
tions as  hereinbefore  provided.  The  permit  or  lease  shall 
contain  the  terms  upon  which  it  is  issued  and  such  other 
matters  as  the  Commissioner  may  deem  important  to  the 
rights  of  the  State  or  applicant.  Should  a  permit  or  lease 
be  issued  upon  a  statement  by  the  applicant  or  applicants, 
or  either  of  them,  which  is  false  or  untrue  in  any  material 
fact,  the  Commissioner  may  cancel  such  permit  or  lease 
when  sufficiently  informed  as  to  such  false  or  untrue  state- 
ments. 

Section  12.  Should  the  owner  of  a  permit  fail  or  re- 
fuse to  proceed  with  reasonable  diligence  in  a  bona  fide  ef- 
fort to  develop  an  area  included  in  such  permit,  the  Com- 
missioner of  the  General  Land  Office  may  cancel  the  same 
Should  the  holder  of  a  lease  fail  or  refuse  to  proceed  with 
reasonable  diligence  and  in  a  bona  fide  effort  to  develop,  op- 
erate and  put  out  the  product  of  a  producing  well  of  petro- 
leum oil  or  natural  gas  at  any  time  during  the  life  of  a  lease, 
the  Commissioner  of  the  General  Land  Office  may  cancel 
such  lease  contract.  In  the  event  of  a  cancellation  of  a  per- 
mit or  lease  contract  for  the  causes  mentioned  in  this  Sec- 
tion the  area  included  therein  shall  be  subject  to  the  appli- 
cation of  another  than  the  forfeiting  owner,  in  the  same 
manner  as  in  the  first  instance ;  provided,  should  a  lease 
covering  a  producing  well  be  cancelled  an  application  for 
a  lease  of  such  area,  or  part  thereof,  may  be  made  direct  to 
said  Commissioner,  and  a  copy  of  such  lease  shall  be  filed  in 
the  office  of  the  county  clerk. 

Section  18.  If  any  mining  claim  of  any  character  shall 
be  filed  upon  jointly  by  two  or  more  claimants  and  any  one 
or  more  of  them  shall  fail  to  contribute  his  proportion  of 
any  expenses  required  in  this  Act  within  the  necessary  time 
the  co-owner  or  co-owners  who  have  paid  the  fees  or  other 


Oil  and  Gas  Laws  111 

expenditures  required  by  this  Act  may,  at  the  expiration  of 
the  time  in  which  the  payment  is  required  to  be  made  and 
after  the  same  has  been  made,  give  notice  in  writing  to  such 
defaulting  co-owner,  or  if  such  defaulting  co-owner  cannot 
be  found,  then  by  pubUcation  in  a  newspaper  published  in 
the  county  where  the  claim  is  situated,  or  if  no  such  news- 
paper be  published  in  such  county,  then  in  the  newspaper 
published  nearest  thereto  at  least  once  a  week  for  four  suc- 
cessive weeks.  If,  after  such  publication  notice,  such  de- 
linquent shall  fail  or  refuse  to  contribute  his  proportion  of 
the  expenditures  required,  his  interests  in  the  claim  shall 
cease  and  shall  be  forfeited  to  the  co-owner  or  co-cwners 
who  have  made  the  required  expenditures.  An  affidavit  of 
such  co-owner  or  co-owners  of  the  claim,  accompanied  with 
notices  given,  shall,  when  recorded  in  the  office  of  the  county 
clerk,  be  sufficient  evidence  of  such  delinquency  and  for- 
feiture 

Section  21.  Any  locator,  claimant,  or  owner  of  any 
mining  claim  under  this  Act  is  authorized  to  fell  and  remove 
for  building  and  mining  purposes  any  timber  or  any  trees 
growing  or  being  upon  any  unoccupied  public  lands  under 
such  ruled  and  regulations  as  the  Commissioner  of  the  Gen- 
eral Land  Office  may,  from  time  to  time,  provide  for  the 
protection  of  timber  and  other  growth  upon  such  lands  and 
such  other  purposes. 

Section  22.  Nothing  in  this  Act  contained  shall  ever 
be  construed  to  destroy,  invalidate  or  impair  any  valid  claim, 
right  or  interest  existing  in,  to  or  concerning  any  lands  what- 
soever at  the  date  of  the  passage  of  this  Act,  or  of  any  pre- 
emptor,  purchaser,  claimant,  settler,  locator  or  any  other  per- 
son whatsoever. 

Section  23.  The  locator  or  owner  of  a  mining  claim 
shall  have  the  right  to  occupy  within  the  limits  of  his  claim 
so  much  of  the  surface  ground  as  is  strictly  necessary  for 
the  use  and  exploitation  of  the  mineral  deposits  and  for  the 
buildings  and  works  necessary  for  mining  operations  and 
for  the  treating  and  smelting  of  the  ore  produced  on  such 
claims  and  to  occupy  within  and  without  the  limits  of  his 
claim  the  necessary  land  for  right  of  way,  for  ingress  and 
egress  to  and  from  his  claim,  for  roadways,  or  railways; 


112  Oil  and  Gas  Laws 

provided,  that  if  the  locator  or  owner  of  the  mineral  right 
cannot  agree  with  the  owner  or  lessee  of  the  surface  right 
in  regard  to  the  acquiring  of  same  and  in  regard  to  the  com- 
pensation for  the  injury  incident  to  the  opening  and  the 
working  of  such  mine  and  the  access  thereto,  he  may  apply 
to  the  judge  of  the  county  court  of  the  county  in  which  such 
mining  claim  is  located  by  filing  a  written  petition  setting 
forth  with  a  sufficient  description  the  property  and  surface 
right  sought  to  be  taken  and  the  purpose  for  which  the  same 
is  to  be  taken,  and  it  shall  be  the  duty  of  such  county  judge 
of  such  county  to  appoint  three  disinterested  freeholders  to 
examine,  pass  upon  and  determine  the  damages  and  compen- 
sation to  be  paid  to  the  owner  of  such  surface  right  or  other 
property  necessary  to  be  taken,  and  the  proceedings  for  ac- 
quiring or  condemning  such  surface  right  or  other  property 
shall,  at  all  times,  so  far  as  possible,  be  covered  by  the  laws 
relating  to  the  condemnation  of  rights  of  way  for  railway 
companies,  the  locator  or  owner  of  such  mining  claim,  occu- 
pying the  position  of  the  railway  company,  and  an  appeal 
may  be  taken  from  the  decision  of  the  commissioners  upon 
the  same  terms  and  conditions  and  subject  to  the  same  reg- 
ulations and  qualifications  prescribed  by  law  for  the  con- 
demnation of  right  of  way  for  railways 

Section  24.  Upon  all  lands  of  any  character  hereto- 
fore sold  or  leased  by  the  State  in  which  the  minerals  or 
mineral  right  were  reserved  to  the  State,  the  public  free 
school  fund.  University  fund,  Asylum  or  other  fund,  the 
grantee  or  lessee,  as  the  case  may  be,  shall  have  the  prior 
right  for  six  months  after  date  upon  which  this  Act  shall 
take  effect  to  prospect,  locate  and  apply  for  mineral  rights 
upon  such  land  heretofore  sold  or  leased  to  him,  and  after 
the  expiration  of  such  six  months  such  preference  or  prior- 
ity right  shall  cease  and  such  grantee  or  lessee  shall  have 
no  prior  or  preference  rights  over  any  other  prospector 
or  locator. 

Section  25.  The  holder  of  a  permit,  a  lease,  s.  prospect- 
ing right,  or  any  other  right  acquired  under  this  Act,  may 
relinquish  one  or  more  of  such  permits,  leases,  claims  or 
prospector's  claims  at  any  time  by  filing  a  relinquishment 


Oil  and  Gas  Laws  113 

in  the  General  Land  Office  after  it  is  duly  recorded  by  the 
clerk  of  the  proper  county,  but  such  holder  shall  not  be  en- 
titled to  a  refund  of  any  sum  paid  thereon. 

Section  26.  The  Commissioner  of  the  General  Land 
Office  shall  collect  and  transmit  to  the  State  Treasurer  all 
money  derived  from  the  development  of  any  minerals  or 
substance  named  herein  and  found  on  the  public  free  school 
land  or  other  public  land,  and  it  shall  be  credited  to  the 
permanent  free  school  fund  or  other  fund  to  which  the  land 
from  which  such  money  is  derived  is  set  apart.  All  money 
derived  from  the  development  of  any  mineral  or  substances 
named  herein  and  found  on  other  than  public  free  school 
land.  University  or  Asylum  land,  shall  be  credited  to  the 
game,  fish  and  oyster  fund  for  the  use  of  that  department. 
All  fees  shall  be  credited  to  the  general  revenue  in  the  man- 
ner provided  by  law  for  other  fees  laid  into  the  General 
Land  Office. 

Section  27.  All  development  in  water  or  on  islands, 
marshes  and  reefs  shall  be  done  under  such  regulations  as 
will  prevent  the  pollution  of  the  water  and  for  the  preven- 
tion of  such  pollution  the  Game,  Fish  and  Oyster  Commis- 
sioner may  be  called  upon  for  assistance  in  the  adoption 
and  enforcement  of  rules  and  regulations  for  the  protection 
of  said  waters.  For  a  violation  of  such  rules  and  regula- 
tions the  Commissioner  of  the  General  Land  Office  may  re- 
voke a  permit  or  cancel  a  lease. 

Section  28.  The  rights  acquired  under  this  Act  shall 
be  subject  to  taxation  as  is  other  property  after  the  owner 
shall  have  paid  to  the  State  the  sums  necessary  to  perfect 
his  rights. 

Section  29.  The  issuance  of  a  permit  or  lease  or  the 
filing  of  a  prospector's  affidavit  on  unsold  land  included 
within  this  Act  shall  not  prevent  the  sale  of  the  land  with- 
out minerals  on  which  such  mineral  or  mining  claim  may 
be  located  under  the  laws  applicable  to  such  land,  but  in 
case  of  such  sale  after  an  application  has  been  filed  with  the 
county  clerk  so  herein  provided  the  purchaser  of  such  land 
shall  not  be  entitled  to  any  part  of  the  proceeds  of  such 
minerals  or  mining  location  nor  other  compensation,  nor 
shall  such  purchaser  have  any  action  for  damages  done  to 


114  Oil  and  Gas  Laws 

such  land  by  or  resulting  from  the  proper  working  of  or 
operation  under  such  permit,  lease  or  prospector's  claim. 

Section  30.  The  Commissioner  of  the  General  Land 
Oflfice  shall  have  general  supervision  of  all  matters  neces- 
sary for  the  proper  administration  of  the  purpose  of  this 
Act,  and  he  is  authorized  to  adopt  rules,  regulations  and  to 
alter  or  amend  them  from  time  to  time  as  may  appear  neces- 
sary for  the  protection  of  the  interest  involved  and  the  exe- 
cution of  the  purposes  of  this  Act  not  inconsistent  with  its 
provisions  and  the  Constitution  of  the  State. 

Section  31.  No  individual,  firm  association  of  per- 
sons or  corporations  shall  be  entitled  to  locate  or  lease  more 
than  five  mining  claims  of  any  character  defined  in  Section 
15  and  19  and  any  location  or  lease  made  contrary  to  this 
Section  shall  be  void ;  provided,  however,  that  upon  coal 
or  lignite  mines  or  deposits  any  one  individual,  firms,  asso- 
ciation of  persons  or  corporations  shall  be  entitled  to  locate 
or  lease  a  total  area  not  to  exceed  twenty-five  hundred  and 
sixty  (2560)  acres. 

Section  32.  If  any  provision  of  this  bill  shall  be  held 
to  be  unconstitutional  either  as  applied  to  any  character  of 
land  or  water  described  in  Section  1  or  in  any  other  re- 
spect, such  decision  shall  not  be  construed  to  invalidate  the 
provision  of  this  Act  with  regard  to  any  other  character  of 
land  of  [or]  waters  described  in  Section  1  or  any  other 
provision  of  this  Act. 

Section  33.  Chapter  1,  Title  93,  of  the  Revised  Civil 
Statutes  of  1911,  relating  to  mines  and  mining  and  all  other 
laws  and  parts  of  laws  relating  to  the  sale  of  minerals  land 
are  hereby  repealed. 

Section  34.  The  fact  that  there  is  no  adequate  statute 
by  which  the  mineral  resources  of  this  State  can  be  properly 
developed  on  the  pubhc  lands  and  the  waters  of  the  State 
creates  an  emergency  and  an  imperative  public  necessity 
exists  that  the  constitutional  rule  requiring  bills  to  be  read 
on  three  several  days  in  each  House  should  be  suspended, 
and  that  this  should  be  placed  upon  its  third  reading  and 
final  passage  and  take  effect  from  and  after  its  passage. 


Oil  and  Gas  Laws  115 

PPffiSENT  LAW  OF  MINES 
AND    MINING 


GENERAL   LAWS  OF  THE  35TH   LEGISLATURE, 
PAGE  158. 

EXTENDING  RIGHTS  OF  PROSPECTORS  FOR 
MINERALS. 

[S.  B.  No   357.]  Chapter  83. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas : 

Section  1.  All  of  Chapter  173  of  the  Regular  Session 
of  the  Thirty-third  Legislature  approved  April  9,  1913, 
shall  be  so  amended  as  to  hereafter  read  as  follows : 

Section  1.  All  public  school.  University  and  Asylum 
land  and  other  public  lands,  fresh  water  lakes,  river  beds 
and  channels,  islands,  bays,  marshes,  reefs  and  salt  water 
lakes  belonging  to  the  State  and  all  lands  which  may  here- 
after be  so  owned  and  all  of  said  lands  which  have  here- 
tofore been  sold  or  disposed  of  by  the  State  or  by  its 
authority  with  a  reservation  of  minerals  or  mineral  rights 
therein  as  well  as  all  lands  which  may  hereafter  be  sold 
with  the  reservation  of  minerals  or  mineral  rights  therein, 
and  lands  purchased  with  a  relinquishment  of  the  minerals 
therein,  shall  be  included  within  the  provisions  of  this  Act 
and  shall  be  open  to  the  prospecting  for  and  the  develop- 
ment of  the  minerals  and  substances  known  as  gold,  silver, 
cinnabar,  lead,  tin,  copper,  zinc,  platinum,  radio-active  min- 
erals, tungsten,  ores  of  aluminum,  coal,  lignite,  iron  ore, 
kaolin,  fire  clays,  barite,  marble,  petroleum,  natural  gas, 
gypsum,  nitrates,  asbestos,  marls,  salt,  onyx,  turquois,  mica, 
guano,  bismuth  and  bismuth  bearing  minerals,  asphalt, 
potash  compounds,  sulphur,  graphite,  magnesia,  fuller's 
earth  and  molybdenum  and  molybdenum  bearing  minerals 
upon  the  terms  and  conditions  provided  in  this  Act. 

Section  2.  Any  person  or  association  of  persons,  cor- 
porate or  otherwise,  being  a  citizen  of  the  United  States  or 
having  declared  an  intention  of  becoming  such,  desiring  to 
obtain  the  right  to  prospect  for  and  develop  the  minerals 


116  Oil  and  Gas  Laws 

and  substances  named  above  that  may  be  in  any  of  the 
areas,  included  herein  may  do  so  under  the  provisions  of 
this  Act  together  with  such  rules  and  regulations  as  may 
be  adopted  by  the  Commissioner  of  the  General  Land 
Office  relative  thereto  and  necessary  for  the  execution  of 
the  purposes  of  this  Act. 

Section  3.  One  desiring  to  obtain  the  right  to  prospect 
for  and  develop  petroleum  oil  and  natural  gas  that  may  be 
in  any  of  the  surveyed  areas  included  herein  shall  file  with 
the  county  clerk  an  application  in  writing  giving  a  designa- 
tion of  same  sufficient  to  identify  it.  The  county  clerk 
shall,  upon  receipt  of  one  dollar  as  a  filing  fee,  file  and 
record  the  application  and  note  the  same  on  his  record  of 
surveys  opposite  the  entry  of  the  proper  survey,  giving  the 
time  of  filing.  When  one  has  obtained  four  sections  or 
that  equivalent  eligible  to  be  embraced  in  one  permit  such 
applicant  shall  not  obtain  any  more  land  within  two  miles 
thereof,  but  if  one  obtains  less  than  four  sections  eligible 
to  be  embraced  in  one  permit  such  one  may  obtain  such 
additional  area  within  two  miles  of  the  other  area  as  will 
equal  four  sections.  One  shall  not  obtain  more  than  on^' 
thousand  acres  within  one  mile  of  a  well  producing  petrc 
leum. 

Section  4.  One  desiring  to  obtain  the  right  to  pros- 
pect for  and  develop  petroleum  and  natural  gas  in  any  of 
the  State's  unsurveyed  areas  named  in  this  Act  shall  file 
with  the  county  surveyor  an  application  in  writing  for  each 
area  applied  for,  giving  a  designation  of  same  sufficient  to 
identify  it,  but  such  area  shall  not  exceed  2560  acres. 
Upon  receipt  of  one  dollar  filing  fee  the  surveyor  shall  file 
and  record  the  application. 

Section  5.  When  the  Commissioner  receives  an  appli- 
cation that  was  filed  with  the  county  clerk  or  an  applica- 
tion that  was  filed  with  the  surveyor  and  the  field  notes  and 
olat,  one  dollar  filing  fee  and  ten  cents  per  acre  for  each 
acre  applied  for  and  a  sworn  statement  by  the  applicant 
showing  what  interest  he  has  in  other  permit,  lease  or  pat- 
ent issued  under  this  Act  and  in  good  standing,  he  shall 
file  same,  and  if  upon  examination  the  application  or  the 
application  and  field  notes  are  found  correct  and  the  area 


Oil  and  Gas  Laws  117 

applied  for  is  within  the  provisions  of  this  Act  the  Coro 
mission  shall  issue  to  the  applicant  or  his  assignee  a  permit 
conferring  upon   him  an   exclusive   right  to  prospect    for 
and  develop  petroleum  and  natural  gas  within  the  desig- 
nated area  for  a  term  not  to  exceed  two  years. 

Section  6.  Before  the  expiration  of  twelve  months  af- 
ter the  date  of  the  permit  the  owner  thereof  shall  in  good 
faith  begin  actual  work  necessary  to  the  physical  develop- 
ment of  said  area  and  if  petroleum  or  natural  gas  is  not 
sooner  developed  in  commercial  quantities  the  owner  or 
manager  shall,  within  thirty  days  after  the  expiration  of 
one  year  from  the  date  of  the  permit  file  in  the  General 
Land  Office  a  sworn  statement  supported  by  two  disinter- 
ested credible  persons  that  such  actual  work  was  beguiv 
within  the  first  twelve  months  aforesaid  and  that  a  bonafide 
effort  to  develop  the  said  area  was  made  during  the  twelve 
months  preceding  the  filing  of  the  statement  and  showing 
what  work  was  done  and  expenditures  incurred  and  wheth- 
er or  not  petroleum  or  natural  gas  had  been  discovered  in 
commercial  quantities.  A  failure  to  file  the  statement 
herein  provided  for  within  the  time  specified  or  the  filing 
of  a  statement  untrue  or  false  in  material  matters  shall 
subject  the  permit  to  forfeiture  and  the  termination  of  the 
rights  of  the  owner.  The  owner  of  a  permit  shall  not  take, 
carry  away  or  sell  any  petroleum  or  natural  gas  before 
obtaining  a  lease  therefore :  provided,  such  quantity  as  may 
be  necessary  for  the  continued  development  of  the  area 
before  obtaining  a  lease  may  be  used  without  accounting 
therefor.     (Amendment  of  March  31st,  1917.) 

Section  7.  If  at  any  time  within  the  life  of  a  permit 
one  should  develop  petroleum  or  natural  gas  in  commercial 
quantities  the  owner  or  manager  shall  be  in  the  General 
Land  Office  a  statement  of  such  development  within  thirty 
days  thereafter,  and  thereupon  the  owner  of  the  permit 
shall  have  the  right  to  lease  the  area  included  in  the  permit 
upon  the  following  conditions : 

1.  An  application  and  a  first  payment  of  two  dollars 
per  acre  for  a  lease  of  the  area  included  in  the  permit  shall 
be  made  to  the  Commissioner  of  the  General  Land  Office 


118  Oil  and  Gas  Laws 

within   thirty   days   after  the   discovery   of    petroleum   or 
natural  gas  in  commercial  quantities. 

2.  Upon  the  payment  of  two  dollars  per  acre  for  each 
acre  in  the  permit  a  lease  shall  be  issued  for  a  term  of  ten 
years  or  less,  as  may  be  desired  by  the  applicant,  and  with 
the  option  of  a  renewal  or  renewals  for  an  equal  or  shorter 
period,  and  annually  after  the  expiration  of  the  first  year 
after  the  date  of  the  lease  the  sum  of  two  dollars  per  acre 
shall  be  paid  during  the  life  of  the  lease,  and  in  addition 
thereto  the  owner  of  the  lease  shall  pay  a  sum  of  money 
equal  to  a  royalty  of  one-eighth  of  the  value  of  the  gross 
production  of  petroleum.  The  owner  of  a  gas  well  shall 
pay  a  royalty  of  one-tenth  of  the  value  of  the  meter  output 
of  all  gas  disposed  of  off  the  premises. 

3.  The  royalties  shall  be  paid  to  the  State  through  the 
Commissioner  of  the  General  Land  Office  at  Austin, 
monthly  during  the  life  of  the  lease.  All  payments  shall 
be  accompanied  by  the  sworn  statement  of  the  owner  or 
manager  or  other  authorized  agent  showing  the  amount 
produced  since  the  last  report  and  the  market  value  of  the 
output  and  a  copy  of  all  pipe  line  receipts,  tank  receipts, 
gauge  of  all  tanks  into  which  petroleum  may  have  been 
run,  or  other  checks  and  memoranda  of  amount  put  out 
or  into  pipe  leins  or  tanks  or  pools.  The  books  and  ac- 
counts, the  receipts  and  discharges  of  all  pipe  lines,  tanks 
and  pools  and  gas  lines  and  gas  pipes  and  all  other  matters 
pertaining  to  the  production,  transportation  and  marketing 
of  the  output  shall  be  open  to  the  examination  and  inspec- 
tion at  all  times  by  the  Commissioner  of  the  General  Land 
Office  or  his  representative  or  any  other  person  authorized 
by  the  Governor  or  Attorney  General  to  represent  the 
State.  The  value  of  any  unpaid  royalty  and  any  sum 
due  the  State  under  this  Act  upon  any  lease  shall  become 
as  prior  lien  upon  all  production  produced  upon  the  leased 
areas  and  the  improvements  situated  thereon  to  secure  the 
payment  of  any  royalty  and  any  sum  due  the  State  arising 
under  the  operation  of  any  portion  of  this  Act. 

4.  The  permit  or  lease  shall  contain  the  terms  upon 
which  it  is  issued  including  the  authority  of  the  Commis- 
sioner to  require  the  drilling  of  wells  necessary  to  offset 


Oil  and  Gas  Laws  119 

wells  drilled  upon  adjacent  private  land,  and  such  other 
matters  as  the  commissioner  may  deem  important  to  the 
rights  of  the  applicant  or  the  State. 

Section  8.  In  the  event  the  surface  of  an  area  includ- 
ed within  the  operations  of  this  Act  has  heretofore  been 
or  may  hereafter  be  acquired  by  one  prior  to  the  filing  of 
an  application  under  the  provisions  herein  such  area  shall 
nevertheless  be  subject  to  prospect  and  lease  as  provided 
herein  but  the  owner  of  the  permit  or  lease  shall  pay  to  the 
owner  of  the  surface  annually  in  advance  during  the  life 
of  the  permit  or  lease,  ten  cents  per  acre  and  the  sum  so 
paid  and  accepted  by  the  surface  owner  shall  be  full  com- 
pensation for  all  damages  to  the  surface. 

Section  9.  Every  person  or  association  of  persons, 
corporate  or  otherwise,  applying  for  a  permit,  lease  or 
patent  shall  file  with  the  application  a  sworn  statement 
showing  what  interest  the  applicant  has  in  any  other  permit 
or  lease  issued  by  the  State  and  in  good  standing  at  the 
date  of  the  statement. 

General  Provisions. 

Section  16.  The  general  provisions  in  this  and  the  fol- 
lowing section  shall  apply  to  all  the  foregoing  provisions  so 
far  as  applicable. 

Surveyed  land  within  the  meaning  of  this  Act  shall  in- 
clude all  tracts  for  which  there  are  approved  field  notes 
on  file  in  the  General  Land  Office  and  eighty  acre  tracts 
and  multiples  thereof  of  such  surveys. 

Unsurveyed  areas  within  the  meaning  of  this  Act  in- 
clude all  areas  for  which  there  are  no  approved  field  notes 
on  file  in  the  General  Land  Office. 

All  applications  for  surveyed  land  shall  be  filed  with  the 
clerk  of  the  county  in  which  the  tract  or  a  portion  thereof 
is  situated  or  with  the  clerk  of  the  county  to  which  such 
ccimty  may  be  attached  for  judicial  purposes  and  accom- 
panied by  one  dollar  filing  fee,  and  it  shall  be  filed  in  the 
General  Land  Office  within  thirty  days  after  it  was  filed 
with  the  county  clerk  and  accompanied  by  one  dollar  filing 
fee. 

All  applications  for  unsurveyed  areas  shall  be  filed  with 
the  county  surveyor,  or  his  deputy,  of  the  county  in  which 


120  Oil  and  Gas  Laws 

the  area  or  a  part  thereof  is  situated,  accompanied  by  one 
dollar  filing  fee,  but  if  such  county  has  no  surveyor  then 
the  application  shall  be  filed  with  the  clerk  of  the  proper 
county  and  by  him  recorded  in  the  surveyor's  records,  and 
m  that  event  the  area  may  be  surveyed  by  the  surveyor 
of  the  nearest  county  as  now  provided  by  law.  The  area 
shall  be  surveyed  within  ninety  days  and  the  application, 
field  notes  and  plat  shaJl  be  filed  in  the  General  Land  Of- 
fice, accompanied  by  a  filing  fee  of  one  dollar,  within  one 
hundred  days  after  the  date  of  the  filing  of  the  application. 

The  payment  per  acre  required  to  be  made  before  the 
issuance  of  a  permit  shall  be  paid  annually  thereafter  dur- 
ing the  life  of  the  permit  or  lease. 

A  separate  written  application  shall  be  made  for  the 
area  desired  in  a  permit.  No  permit,  lease  or  patent  shall 
embrace  the  area  in  two  or  more  applications. 

No  application,  permit,  lease  or  patent  shall  embrace  a 
divided  area. 

Whole  tracts  of  surveyed  land  may  be  applied  for  as  a 
whole  or  in  eighty  acre  tracts  or  multiples  thereof  without 
furnishing  field  notes  therefor. 

A  duplicate  of  every  permit  and  lease  shall  be  kept  in 
the  General  Land  Office. 

The  area  in  each  permit  shall  be  developed  inde- 
pendently of  other  areas. 

When  one  desires,  a  lease  or  patent  to  any  one  or  more 

whole  tracts  in  the  permit  may  be  abandoned  by  relinquish- 
ment filed  in  the  General  Land  Office  as  herein  provided 
and  thereupon  obtain  a  lease  or  patent  upon  the  remaining 
area ;  provided  such  remaining  areas  is  in  a  solid  body. 

An  owner  may  relinquish  a  permit  or  lease  at  any  time 
by  having  the  deed  of  relinquishment  acknowledged,  re- 
corded by  the  proper  county  clerk  and  filed  in  the  General 
Land  Office  accompanied  by  one  dollar  filing  fee.  The 
Commissioner  of  the  General  Land  Office  shall  mail  notice 
to  the  proper  county  clerk  of  the  filing  of  the  relinquish- 
ment and  when  said  notice  has  nad  time  through  due 
course  of  mail  to  reach  said  clerk  the  area  shall  be  sub- 
ject to  applications  as  in  the  first  instance. 


Oil  and  Gas  Laws  121 

Section  17.  The  proceeds  arising  from  activities  under 
this  Act  which  affects  land  belonging  to  the  public  free 
school  fund,  the  permanent  University  fund  and  the  per- 
manent fund  of  the  several  asylums  shall  be  credited  to  the 
permanent  fund  of  said  institutions  and  the  proceeds  aris- 
ing from  the  activities  affecting  other  areas  shall  be  credit- 
ed to  the  Game,  Fish  and  Oyster  fund. 

Section  18.  The  owner  of  a  file  or  permit  or  lease 
under  any  provision  of  this  Act  may  sell  same  and  the 
rights  secured  thereby  at  any  time,  also  fix  a  lien  of  any 
kind  thereon  to  any  person,  association  of  persons,  cor- 
porate or  otherwise,  who  may  be  qualified  to  receive  a 
permit  or  lease  in  the  first  instance;  provided,  the  instru- 
ment evidencing  the  sale  or  lien  shall  be  recorded  in  the 
county  where  the  area  or  part  thereof  is  situated  or  in  the 
county  to  which  such  county  may  be  attached  for  judicial 
purposes  and  same  shall  be  filed  in  the  general  Land  Office 
within  sixty  days  after  the  date  thereof  accompanied  with 
a  filing  fee  of  one  dollar,  and  if  not  so  filed  the  contract 
evidenced  by  said  instrument  shall  be  void  and  the  obliga- 
tions therein  assumed  shall  not  be  enforceable ;  provided 
further,  a  sublease  contract  need  not  be  filed  in  the  Gen- 
eral Land  Office. 

Section  19.  If  a  permit  or  lease  should  be  issued  upon 
a  statement  by  the  applicant  which  is  false  or  untrue  in 
material  matters,  or  should  the  owner  of  a  permit  fail  or 
refuse  to  begin  in  good  faith  the  work  necessary  to  the 
development  of  the  area  within  the  time  required,  or  should 
the  owner  of  a  permit  fail  or  refuse  to  preceed  in  good 
faith  and  with  reasonable  diligence  in  a  bona  fide  effort  to 
develop  an  area  included  in  his  permit  after  having  begun 
the  development,  or  should  the  owner  of  a  permit  fail  or 
refuse  to  apply  for  a  lease  within  the  prescribed  time,  or 
should  the  owner  of  a  lease  fail  or  refuse  to  proceed  in 
good  faith  and  with  reasonable  diligence  and  in  a  bona 
fide  effort  to  develop,  operate  and  put  out  the  mineral  or 
other  substance  at  any  time  during  the  life  of  the  lease,  or 
should  the  owner  of  a  lease  fail  or  refuse  to  make  proper 
remittances  in  payment  of  royalty  or  other  payments  or 
fail  or  refuse  to  make  the  proper  statement,  or  fail  to 
furnish  the  required  evidence  of  the  output  and  market 
value  and  material  matters  relating  thereto  when  requested, 


122  Oil  and  Gas  Laws 

or  fail  to  make  the  annual  payment  on  the  area  when 
requested  so  to  do  the  permit  or  lease,  as  the  case  may 
be,  shall  be  subject  to  forfeiture,  and  when  the  Commis- 
sioner is  sufficiently  informed  of  the  facts  which  subject 
the  permit  or  lease  to  forfeiture  he  may  declare  same 
forfeited  by  proper  entry  upon  the  duplicate  permit  or 
lease  kept  in  the  General  Land  Office.  When  forfeiture 
has  been  declared  a  notice  of  that  fact  shall  be  mailed  to 
the  proper  county  clerk  and  the  area  shall  be  subject  to 
the  application  of  another  than  the  forfeiting  owner  when 
the  notice  has  had  time  to  reach  the  county  clerk  through 
due  course  of  mail ;  provided,  the  Commissioner  may  exer- 
cise large  discretion  in  the  matter  of  requiring  one  to  de- 
velop gas  wells,  and  provided  further,  that  all  forfeitures 
may,  within  the  discretion  of  the  Commissioner  be  set  aside 
and  all  rights  reinstated  before  the  rights  of  another  inter- 
vene. 

Section  20.  An  owner  of  any  claim  for  any  mineral 
or  substance  included  in  this  Act  may  fell  and  remove  for 
building  or  mining  purposes  any  timber  upon  any  of  the 
unsold  areas  included  within  this  Act,  and  shall  also  have 
the  right  to  occupy  within  the  limits  of  his  application,  per- 
mit or  lease,  so  much  of  the  surface  thereof  as  may  be 
necessary  for  the  development  of  the  minerals  and  sub- 
stances therein,  and  shall  have  the  right  of  ingress  to  and 
from  the  area  embraced  in  the  file,  permit,  lease  or  patent. 
Ten  cents  per  acre  shall  be  paid  to  the  owner  of  the  sur- 
face and  when  accepted  by  the  owner,  it  shall  be  deemed 
full  compnsation  for  such  damages  as  may  be  occasioned 
to  the  surface  through  the  occupancy  and  operation  by  the 
owner  of  the  permit,  lease  or  patent. 

Section  21.  Neither  the  filing  of  an  application  under 
any  provision  of  this  Act  nor  the  issuance  of  a  permit  or 
lease  on  any  of  the  unsold  land  included  herein  shall  pre- 
vent the  sale  of  the  surface  without  the  minerals  and  in 
case  of  such  sale  subsequent  to  the  posting  of  any  notice  or 
the  filing  of  an  application  the  purchaser  shall  not  be 
entitled  to  the  ten  cents  per  acre  that  is  provided  for 
owners  of  the  surface  at  the  time  of  filing  nor  shall  such 
owner  be  entitled  to  any  damages  that  may  be  occasioned 
by  the  working  of  any  area. 


Oil  and  Gas  Laws  123 

Section  22.  All  development  in  water  or  on  islands, 
marshes,  reefs  or  river  beds  and  channels  shall  be  done 
under  such  regulations  as  will  prevent  the  pollution  of  the 
water  and  for  the  prevention  of  such  pollution  the  Commis- 
sioner of  the  General  Land  Office  may  call  upon  the  Game, 
Fish  and  Oyster  Commissioner  for  assistance  in  the  adop- 
tion and  enforcement  of  rules  and  regulations  for  the  pro- 
tection of  the  waters  from  such  pollution.  The  Commis- 
sioner of  the  General  Land  Office  may  cancel  a  claim, 
location,  file,  permit  or  lease  or  patent  for  a  failure  or 
refusal  of  the  owner  to  comply  with  such  rules  and  regu- 
lations as  may  be  adopted. 

Section  23.  Should  any  mineral  or  substance  within 
the  provisions  of  this  Act,  other  than  those  included  in  the 
permit  or  lease  under  which  one  is  operating,  be  discover- 
ed while  the  area  is  being  worked  for  the  minerals  and 
substances  embraced  in  such  permit  or  lease,  the  owner 
thereof  shall  have  a  preference  right  for  sixty  days  after 
such  discovery  in  which  to  file  on  the  area  allowed  one 
for  such  mineral  or  other  substance  by  complying  with 
the  provisions  of  this  Act  relating  to  the  mineral  or  sub- 
stance so  discovered  but  shall  not  be  required  to  pay  either 
of  the  additional  ten  cents  per  acre  to  the  State  or  the 
owner  of  the  surface,  and  the  remaining  portion  of  said 
area  shall  be  subject  to  the  application  of  others  in  the 
same  manner  as  if  there  were  no  pre-existing  file  thereon. 

Section  24.  If  the  owner  of  a  claim  upon  any  mineral 
or  other  substance  named  in  this  Act,  other  than  petro- 
leum and  natural  gas  which  has  been  acquired  under  any 
previous  statute,  should  desire  to  accept  the  provisions  of 
this  Act  and  operate  hereunder  he  may  do  so  by  filing  a 
declaration  to  that  effect  in  the  General  Land  Office  to- 
gether with  the  payment  required  in  the  particular  in- 
stance and  obtain  a  permit  or  lease  by  complying  with  the 
provisions  hereof  relating  thereto.  The  rights  under  such 
acceptance  shall  begin  from  the  date  the  declaration  is 
filed  and  the  owner  shall  have  the  same  rights  thereafter 
a-  IS  accorded  those  who  make  original  filings  under  this 
Act. 


124  Oil  and  Gas  I^aws 

Section  25.  At  any  time  during  the  life  of  a  permit 
but  prior  to  accepting  a  lease  upon  any  area  for  any  min- 
eral or  other  substance  included  within  the  provisions  of 
this  Act,  except  petroleum  and  natural  gas,  the  owner  of  a 
permit  may  elect  to  pay  one  hundred  dollars  per  acre  for 
the  area  embraced  in  his  permit  and  obtain,  under  the 
rules  governing  the  issuance  of  patents  to  land,  a  patent 
for  all  the  minerals  that  may  be  in  such  area  except  petro- 
leum and  natural  gas  in  lieu  of  the  payment  of  the  royalty 
as  provided  in  this  Act ;  provided,  however,  one  shall  pay 
the  prescribed  royalty  on  all  minerals  and  substances  put 
out  and  disposed  of  while  developing  the  area  prior  to 
obtaining  a  lease  or  patent. 

Section  26.  The  Commissioner  of  the  General  Land 
Office  shall  have  the  general  supervision  of  all  matters 
necessary  for  the  proper  administration  of  this  Act  and 
he  is  authorized  to  adopt  rules  and  regulations  and  to  alter 
or  amend  them  from  time  to  time  as  he  may  deem  neces- 
sary for  the  protection  of  the  interests  involved  and  not 
inconsistent  with  the  provisions  herein. 

Section  27.  Rights  acquired  under  this  Act  shall  be 
subject  to  taxation  as  is  other  property. 

Section  28.  Chapter  173  approved  April  9,  1913,  and 
all  other  laws  and  parts  of  laws  in  conflict  with  this  Act 
are  hereby  repealed. 

Section  29.  The  fact  that  portions  of  the  mineral 
statute  are  so  incongruous  and  difficult  of  interpretation 
as  to  be  almost  inoperative  and  the  fact  that  a  law  clear 
in  its  terms  and  ample  to  secure  the  development  of  the 
State's  mineral  wealth  is  badly  needed  and  the  near  ap- 
proach to  the  close  of  the  session  creates  an  emergency 
and  an  imperative  public  necessity  exists  that  the  consti- 
tutional rule  which  requires  bills  to  be  read  on  three 
several  days  in  each  house  be  suspended  and  that  this 
take  effect  from  and  after  its  passage  and  it  is  so  enacted. 

Approved  March  16,  1917. 

Takes  effect  90  days  after  adjournment 


Oil  and  Gas  Laws  125 

GENERAL  LAWS,  SECOND  CALLED  SESSION 
36TH  LEGISLATURE,  PAGE  249. 

AN  ACT  TO  PROMOTE  THE  DEVELOPMENT  OF 

OIL  AND  GAS  RESOURCES  OF  THE  STATE 

OF  TEXAS  IN  PUBLIC  LANDS. 

AN   ACT 
To  be  entitled 

An  Act  to  promote  the  development  of  oil  and  gas  re- 
sources of  the  State  of  Texas  in  Asylum,  University 
and  public  free  school  lands,  constituting  the  owner  of 
the  soil,  the  agent  of  the  State  in  procuring  said  devel- 
opment in  certain  instances  and  in  the  manner  provided 
herein,  and  in  consideration  for  said  services,  relin- 
quishing to  and  vesting  in  the  owner  of  the  soil  an  undi- 
vided fifteen-sixteenth  of  all  oil  and  gas  and  the  value 
of  the  same  that  may  be  within  or  upon  all  surveyed 
public  free  school  and  asylum  land  and  portions  of 
same  which  have  heretofore  been  sold  and  which  may 
hereafter  be  sold  with  a  mineral  classification  or  with 
a  mineral  reservation,  and  reserving  to  the  public  free 
school  and  asylum  funds  the  remaining  undivided  one- 
sixteenth  and  the  value  of  same ;  authorizing  the  owner 
of  the  soil  to  sell  or  lease  same  for  the  development  of 
the  oil  and  gas  that  may  be  therein  and  securing  to  said 
funds  their  portion  thereof ;  providing  for  the  drilling 
of  offset  wells ;  providing  for  the  forfeiture  of  oil  and 
gas  rights  or  failure  to  comply  with  the  law  and  for 
the  reinstatement  of  forfeited  rights ;  providing  for  a 
combination  of  oil  and  gas  permits  and  for  the  exten- 
sion of  time  in  which  to  begin  and  complete  develop- 
ment upon  payment  of  sums  due  under  the  terms  of 
the  permits,  providing  for  the  assignment  of  permits 
and  leases ;  providing  for  the  relinquishment  of  the 
whole  or  part  of  a  permit;  providing  that  permits  on 
University  land  shall  come  within  certain  provisions  of 
this  Act;  providing  that  payment  per  acre  and  obliga- 
tions to  pay  royalty  shall,  when  paid,  be  in  lieu  of 
damages  to  the  soil ;  providing  that  rights  secured  undc. 


126  Oil  and  Gas  Laws 

lormer  law  shall  not  be  affected  except  as  changed  or 
modified  by  this  Act  and  declaring  an  emergency. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas. 

Section  1.  To  promote  the  active  co-operation  of  the 
owner  of  the  soil  and  to  facilitate  the  development  of  its 
oil  and  gas  resources  the  State  hereby  constitutes  the  own- 
er of  the  soil,  its  agent  for  the  purposes  herein  named,  r.nd 
in  consideration  herefore,  relinquishes  to  and  vests  in  the 
owner  of  the  soil  an  undivided  fifteen-sixteenths  of  all 
oil  and  gas  and  the  value  of  the  same  that  may  be  upon 
or  within  the  surveyed  free  school  and  asylum  lands  and 
portions  of  such  surveys  that  have  heretofore  been  sold 
with  a  mineral  classification  and  that  which  may  hereafter 
be  sold  with  a  mineral  classification  or  mineral  reserva- 
tion, subject  to  the  terms  and  conditions  of  this  Act  and 
any  future  law ;  and  the  remaining  undivided  portion  of 
said  oil  and  gas  and  the  value  of  same  is  hereby  reserved 
for  the  use  and  benefit  of  the  public  free  school  fund  and 
the  several  asylum  funds. 

Section  2.  The  owner  of  said  land  is  hereby  author- 
ized to  sell  or  lease  to  any  person,  firm  or  corporation  the 
oil  and  gas  that  may  be  thereon  or  therein  upon  such  terms 
and  conditions  as  such  owner  may  deem  best,  subject  only 
to  the  provisions  of  this  Act  and  the  reservation  herein, 
for  the  benefit  of  the  school  and  asylum  funds.  All  leases 
and  sales  so  made  shall  be  assignable ;  provided  that  no 
oil  or  gas  rights  shall  be  sold  or  leases  hereunder  for  less 
than  ten  cents  per  acre  per  year,  plus  royalty,  and  the 
lessee  or  purchaser  shall  in  every  case  pay  to  the  State 
ten  cents  per  acre  per  year  of  sales  and  rentals,  and,  in 
case  of  production,  shall  pay  to  the  State  the  undivided 
one-sixteenth  of  the  value  of  the  oil  and  gas  as  reserved 
in  Section  1  of  this  Act;  it  being  expressly  provided  that 
all  sales  or  leases  of  the  land  made  by  the  owner  under 
this  Section  of  the  Act  shall,  as  respects  the  rental  to  be 
paid,  be  made  for  and  inure  to  the  benefit  of  the  State 
to  the  extent  herein  provided. 

Sec.  3.     If  oil  or  gas  should  be  discovered  in  paying 
quantities  on  land  that   is  not   included   in  this  Act  and 


Oil  and  Gas  Laws  127 

within  one  thousand  feet  of  land  that  is  so  included,  the 
owner,  lessee,  sub-lessee  or  receiver  or  other  agent  in  con- 
trol of  such  land  as  included  herein,  shall  in  good  faith 
begin  the  drilling  of  an  offset  well  or  wells  upon  such  land 
as  is  included  herein  within  one  hundred  days  after  the 
first  discovery,  and  prosecute  same  with  diligence  to 
completion.  Every  offset  well  shall  be  drilled  to  the  depth 
necessary  for  effective  protection  against  undue  drainage 
by  other  wells  on  other  lands  in  that  locality. 

Section  4.  If  the  persons  aforesaid,  who  own  or  con- 
trol land  included  in  this  Act  should  fail  or  refuse  to  be- 
gin such  drilling  of  offset  wells  thereon  within  the  time 
required,  or  fail  or  refuse  to  drill  such  well  or  wells  dili- 
gently and  in  good  faith  or  fail  or  refuse  to  drill  such 
well  or  wells  to  the  depth  necessary  for  the  purpose  in- 
tended, or  fail  or  refuse  to  use  the  means  necessary  to 
the  development  of  any  well  or  wells  drilled  thereon, 
thereupon  the  relinquishment  herein  granted  shall  ipso 
facto  terminate  and  the  rights  acquired  thereunder  shall 
likewise  terminate,  and  the  oil  and  gas  relinquished  herein 
shall  revert  to  and  become  the  property  of  the  State's  Gen- 
eral Revenue  Fund ;  and  when  the  Commissioner  of  the 
General  Land  Office  is  sufficiently  informed  of  the  facts 
which  so  terminate  such  rights,  he  shall  indorse  on  the 
wrapper  containing  the  papers  relating  to  the  sale  of  the 
land  words  indicating  such  termination  and  sign  it  officially. 

Section  5.  When  the  relinquishment  granted  herein 
and  the  rights  acquired  thereunder  shall  have  been  ter- 
minated as  provided  in  the  preceding  section,  the  Commis- 
sioner shall  take  possession  of  the  land  and  advertise  the 
oil  and  gas  therein  for  sale.  All  such  sales  shall  be  made 
at  such  times  as  the  Commissioner  may  determine  and  in 
the  same  manner  as  is  now  provided  for  the  sale  of  public 
free  school  land.  The  sale  shall  be  made  to  the  person, 
firm  or  corporation  that  will  pay  the  highest  price  there- 
for in  addition  to  one-eighth  of  the  oil  and  gas  produced 
or  the  value  of  same,  which  shall  be  reserved  to  the  public 
free  school  fund.  The  sum  received  in  addition  to  the 
reserved  one-eighth  shall  be  divided  equally  between  the 


128  Oil  and  Gas  Laws 

General  Revenue  Fund  of  the  State  and  the  owner  of  the 
soil  after  deducting  the  expenses  incident  to  the  advertise- 
ment and  sale.  Purchasers  at  such  sales  shall  begin  the 
drilling  of  the  necessary  oflFset  wells  within  sixty  days 
after  the  acceptance  of  their  offer  and  the  failure  to  do  so 
and  the  failure  to  comply  with  the  provisions  of  this  Act 
relating  to  the  drilling  of  offset  wells  shall  likewise  operate 
as  a  termination  of  the  rights  acquired  thereunder  and  the 
substances  therein  shall  be  subject  to  sale  as  herein  pro- 
vided. 

Section  6.  One-sixteenth  of  the  value  of  the  gross 
production  of  oil  saved  and  one-sixteenth  of  the  gross 
production  of  gas  saved  and  sold  off  the  premises  shall  be 
paid  to  the  State  and  like  amounts  to  the  owner  of  the  soil 
on  or  before  the  twentieth  day  of  each  month  for  the 
preceding  month  and  it  shall  be  accompanied  by  a  sworn 
statement  of  the  owner,  manager,  or  other  authorized 
agent,  showing  the  gross  amount  of  oil  produced  and  sold 
oft'  the  premises,  and  the  market  value  of  same,  together 
with  a  copy  of  all  daily  gauges  of  tanks,  gas  meter  read- 
ings, if  any,  pipe  line  receipts,  gas  line  receipts  and  other 
checks  or  memoranda  of  amount  produced  and  put  into  the 
pipe  lines,  tanks  or  pools  and  gas  lines  or  gas  storage.  The 
books  and  accounts,  the  receipts  and  discharges  of  all  lines, 
tanks,  pools  and  meters,  and  all  contracts  and  other  records 
pertaining  to  production,  sale  and  marketing  of  oil  or  gas 
shall  at  all  times  be  subject  to  inspection  and  examination 
by  the  Commissioner  of  the  General  Land  Office,  the  At- 
torney General,  the  Governor,  or  the  representative  of 
either. 

Section  7.  All  sums  due  the  State  under  the  opera- 
tions of  this  Act  shall  be  due  and  payable  at  Austin,  Travis 
County,  and  shall  be  paid  to  the  Commissioner  of  the 
General  Land  Office  and  he  shall  transmit  all  remittances 
in  the  form  received  to  the  State  Treasurer,  who  shall 
credit  the  fund  to  which  the  land  originally  belonged  with 
the  amount  paid  upon  production. 

Section  8.  The  State  shall  have  a  first  lien  upon  all  oil 
and  gas  produced  upon  the  land  to  secure  the  payment  of 
all  sums  of  money  that  may  be  due  or  become  due  under 
the   provisions   of   this   Act;   and   the  owner   of   the   soil 


Oil  and  Gas  Laws  129 

shall  have  a  second  lien  thereon  to  secure  tiie  payment  of 
any  sum  that  may  be  due  him. 

Section  9.  If  any  person,  firm  or  corporation,  operat- 
ing under  this  Act  should  fail  or  refuse  to  make  the  pay- 
ment of  any  sum  of  money  due  within  thirty  days  after  it 
becomes  due,  or  if  such  one  or  an  authorized  agent  should 
knowingly  make  any  false  return  or  false  report  concern- 
ing production  or  drilling,  or  if  such  one  should  fail  or 
refuse  the  proper  authority  access  to  the  records  pertain- 
ing to  the  operations,  or  if  such  one  or  an  authorized  agent 
should  knowingly  fail  or  refuse  to  furnish  to  the  General 
Land  Office  a  correct  log  of  any  well,  the  rights  acquired 
under  the  permit  or  lease  shall  be  subject  to  forfeiture  by 
the  Commissioner  of  the  General  Land  Office,  and  when 
sufficiently  informed  of  the  facts  which  authorize  a  for- 
feiture, he  shall  forfeit  same,  and  the  oil  and  gas  shall  lie 
subject  to  sale  in  the  manner  as  provided  in  Section  five  of 
this  Act;  except  the  owner  of  the  soil  shall  not  thereby 
forfeit  his  interest  in  the  oil  and  gas ;  provided  such  for- 
feiture may  be  set  aside  and  all  rights  theretofore  existing 
shall  be  reinstated  at  any  time  before  the  rights  of  another 
intervene  upon  satisfactory  evidence  of  future  compliance 
with  the  provisions  of  this  Act. 

Section  10.  The  provisions  of  this  Act  relinquishing 
to  the  owner  of  the  soil  fifteen-sixteenths  of  the  oil  and 
gas  in  or  under  such  soil  is  made  subject  to  the  rights  now 
existing  under  valid  permits  to  prospect  for  oil  and  gas 
that  have  heretofore  been  issued  or  which  may  hereafter 
be  issued  upon  valid  application  now  on  file  for  such  per- 
mit ;  and  the  rights  secured  under  such  permits  or  appli- 
cations for  permits  shall  be  terminated  in  the  manner  prc^- 
vided  by  the  law  under  which  such  rights  were  secured  or 
under  the  provisions  of  this  Act,  but  when  such  rights 
shall  be  so  terminated,  such  relinquishments  shall  be  fully 
eflfective ;  provided  a  relinquishment  to  the  State  of  a 
/ease  that  may  be  producing  oil  or  gas  in  paying  quantities 
shall  not  operate  to  relinquish  or  convey  to  the  owner  of 
the  soil  any  interest  whatever  in  the  oil  and  gas  that  may 
be  in  the  land  included  in  such  lease. 

Section  11.  If  one  has  heretofore  or  should  hereafter 
acquire  any  valid  right  to  the  oil  and  gas  in  any  unsold 


130  Oil  and  Gas  Laws 

public  free  school  or  asylum  land  under  any  other  law,  a 
subsequent  purchaser  of  such  land  shall  not  acquire  any 
rights  to  any  of  the  oil  and  gas  that  may  be  therein, 
but  when  such  rights  shall  be  terminated  in  the  manner 
provided  in  the  law  under  which  such  rights  were  obtained, 
then  the  owner  of  the  soil  shall  become  the  owner  of  that 
portion  of  the  oil  and  gas  therein  relinquished  and  shall 
be  thereafter  subject  to  the  provisions  of  this  Act.  A  for- 
feiture of  the  purchase  of  any  survey  or  tract  for  any 
cause  shall  operate  as  a  forfeiture  of  the  minerals  therein 
to  the  State. 

Section  12.  Permits  issued,  or  to  be  issued  upon  applica- 
tions heretofore  filed,  or  hereafter  filed  upon  any  land  in- 
cluded in  this  Act  may  be  assigned  as  a  whole  into  one 
ownership  or  may  be  grouped  or  combined  into  one  organi- 
zation, upon  such  terms  as  the  owners  may  agree,  and  in 
one  or  more  groups  or  combinations  not  to  exceed  sixteen 
sections  of  640  acres  each,  more  or  less,  in  one  group,  for 
the  purpose  of  developing  oil  and  gas.  All  such  assign- 
ments and  agreements  shall  be  recorded  in  the  county  or 
counties  in  which  the  land  or  part  thereof  is  situated  and 
shall  be  filed  in  the  General  Land  Office  within  sixty  days 
after  the  execution  of  the  same,  accompanied  by  one  dollar 
as  a  filing  fee. 

Section  13.  The  owner  of  a  permit  issued  upon  appli- 
cations heretofore  or  hereafter  filed  shall  have  eighteen 
months  from  the  date  thereof  in  which  to  begin  the  drill- 
ing of  a  well  for  oil  and  gas  on  some  portion  of  the  land 
included  therein.  The  owner  or  owners  of  a  combination 
of  permits,  held  by  assignment  or  agreement  shall  have  a 
like  period  of  eighteen  months  from  the  average  date  oi 
the  permits  included  therein  in  which  to  begin  the  drilling 
of  a  well  for  oil  and  gas  on  some  portion  of  the  land  in- 
cluded therein,  and  the  drilling  on  one  permit  shall  be 
sufficient  for  the  protection  against  forfeiture  of  all  the 
permits  included  in  such  combination.  Owners  of  permits 
included  herein  shall  have  three  years  after  the  date  of  the 
permit  and  the  same  time  after  the  average  date  of  the  per- 
mits placed  in  a  combination  of  permits  in  which  to  com- 
plete the  development  of  oil  and  gas  thereon,  and  if  oil  and 
gas  should  not  be  found  in  paying  quantities  and  a  lease 


Oil  and  Gas  Laws  131 

applied  for  within  said  time,  all  rights  in  such  permit  or 
combination  of  permits  shall  terminate,  and  the  oil  and 
gas  in  such  land  shall  become  subject  to  the  provisions  of 
this  Act  relating  to  the  relinquishment  of  oil  and  gas  to  the 
owner  of  the  soil. 

Section  14.  If  oil  or  gas  should  be  produced  in  pay- 
ing quantities  upon  any  land  included  in  this  Act,  the 
owner  of  the  permit  shall  report  the  development  to  the 
Commissioner  of  the  General  Land  Office  within  thirty 
days  thereafter  and  apply  for  a  lease  upon  such  whole 
surveys  or  tracts  in  each  permit  as  the  owner  or  owners 
of  a  combination  of  permits  may  desire  to  be  leased  and 
accompany  the  application  with  a  log  of  the  well  or  wells, 
and  the  correctness  of  the  log  shall  be  shown  by  the  own- 
er, manager  or  driller,  and  thereupon  a  lease  shall  be 
issued  without  the  payment  of  any  additional  sum  of 
money  and  for  a  period  not  to  exceed  ten  years,  subject 
to  renewal  or  renewals. 

Section  15.  The  owner  of  a  permit  or  combination  of 
permits  that  desire  to  avail  themselves  of  the  terms  of  this 
Act  shall  pay  to  the  State  ten  cents  per  acre,  annually  in 
advance,  for  the  second  and  third  years  and  shall  likewise 
pay  to  the  owner  of  the  soil  ten  cents  per  acre  for  the  first 
year  of  such  permit  before  availing  himself  of  the  priv- 
ileges of  this  Act,  and  a  like  sum  thereafter  annually  in 
advance.  A  failure  to  make  either  of  said  payments  shall 
subject  the  permit  or  permits  to  forfeiture  by  the  Commis- 
sioner of  the  General  Land  Office  and  when  sufficiently 
informed  of  the  facts  which  subjects  the  permit  or  permits 
to  forfeiture  the  said  Commissioner  shall  forfeit  the  permit 
or  permits  by  an  endorsement  of  forfeiture  upon  the  wrap- 
per containing  the  papers  relating  to  the  permit  or  permits 
and  sign  it  officially.  The  payment  of  the  ten  cents  per 
acre  to  the  owner  of  the  soil  may  be  made  in  person  or  by 
payment  to  the  County  Clerk  of  the  county  in  which  the 
land  is  situated,  and  the  said  clerk  shall  deposit  such  pay- 
ment in  some  bank  at  the  county  seat  to  the  credit  of  the 
record  owner  of  such  land.  If  the  owner  of  the  soil 
should  refuse  to  accept  such  payment,  the  said  clerk  shall 
withdraw  such  deposit  and  return  same  to  the  owner  of 
the  permit  or  permits.     The  payment,  or  the  tender  of 


132  •  Oil  and  Gas  I^aws 

payment,  shall  be  evidenced  by  the  receipt  of  the  owner  or 
part  owner  or  County  Clerk  filed  among  the  papers  in  the 
General  Land  Office  relating  to  such  permit  or  permits. 

Section  16.  The  owner  of  a  permit  or  combination  of 
permits  may  relinquish  to  the  State  a  permit  or  combina- 
tion of  permits  or  any  whole  survey  or  whole  tract  includ- 
ed in  a  permit  at  any  time  before  obtaining  a  lease  there- 
for by  having  such  relinquishment  recorded  in  the  county 
or  counties  in  which  the  land  or  a  part  thereof  is  situated 
and  file  it  in  the  General  Land  Office  within  sixty  days 
after  its  execution,  accompanied  by  one  dollar  as  a  filing 
fee. 

Section  17.  The  provisions  of  this  Act,  so  far  as  they 
relate  to  a  combination  of  permits  and  extensions  of  time 
for  beginning  development  and  time  for  development,  shall 
Apply  to  permits  heretofore  issued  and  those  hereafter  is- 
sued upon  University  land. 

Section  18.  The  payment  of  the  ten  cents  per  acre 
and  the  obligation  to  pay  the  owner  of  the  soil  one-six- 
teenth of  the  production  and  the  payment  of  same  when 
produced  and  the  acceptance  of  same  by  the  owner,  shall 
be  in  lieu  of  all  damages  to  the  soil. 

6'ection  19.  All  the  terms,  conditions,  limitations  and 
obligations  provided  in  the  law  under  which  permits  in- 
cluded herein  have  been  or  may  be  issued  and  rights  se- 
cured therein  shall  continue  and  remain  in  full  fore  and 
effect  except  as  changed  or  modified  by  this  Act. 

Section  20.  All  laws  and  parts  of  laws  in  conflict  with 
the  provisions  of  this  Act  are  hereby  repealed. 

Section  21.  The  importance  of  the  legislation  pro- 
posed and  the  short  term  of  this  Special  Session  creates  an 
emergency  and  an  imperative  public  necessity  exists  that  the 
Constitutional  rule  requiring  bills  to  be  read  on  three  separ- 
ate days  in  each  House  should  be  suspended  and  that  this 
bill  be  placed  upon  third  reading  and  final  passage  and  that 
it  take  effect  from  and  after  its  passage,  and  it  is  so 
enacted. 


Oil  and  Gas  Laws  133 

GENERAL   LAWS,   SECOND   CALLED    SESSION, 
36TH  LEGISLATURE,  PAGE  5L 

AN  ACT  TO  PROVIDE  FOR  LEASING  ISLANDS, 

SALT  WATER  LAKES,  ETC. 

AN   ACT 

To  be  entitled 

To  lease  islands,  salt  water  lakes,  bays,  inlets,  reefs  and 
marshes  owned  by  the  State  within  tide  water  limits, 
and  that  portion  of   the   Gulf   of    Mexico   within   the 
jurisdiction  of  the  State  of  Texas,  and  the  unsurveyed 
public  free  school  lands,  for  the  production  of  oil  and 
natural  gas ;  authorizing  the  Commissioner  of  the  Gen- 
eral Land  Office  to  adopt  necessary  rules  and  regula- 
tions  in   relation  thereto;  prescribing  the  terms   upon 
which  leases  may  be  issued;  providing  for  the  adver- 
tisement of  the  areas  before  they  are  leased ;  prscribing 
the   requirements    for   applications;   providing    for   the 
recognition   or  abandonment  of    former   surveys;   pre- 
scribing how  and  when  royalty  shall  be  paid;  appro- 
priating the   proceeds  to  the  public   free   school   fund 
and  the  general  revenue  fund;  creating  a  first  lien  in 
favor  of  the  State;  providing  for  offset  wells;  provid- 
ing   against    pollution    of    water    and    authorizing    the 
Game,  Fish  and  Oyster  Commissioner  to  enforce  rules 
against   such  pollution ;  providing  that   leases  may  be 
transferred  or  relinquished  to  the  State ;  providing  for 
forfeiture  of  leases  if  the  owner  should  fail  or  refuse 
to    comply    with    the    law    and    rules    and    regulations 
adopted  relative  thereto ;  providing  for  opening  of  roads 
as  ways  of  ingress  and  egress  to  and  from  leased  areas ; 
providing  for  the  protection  of  valid  rights  heretofore 
acquired  and  declaring  an  emergency. 
Section   L     All  islands,  salt  water  lakes,  bays,  inlets, 
marshes  and  reefs  owned  by  the  State  within  tide  water 
limits,  and  that  portion  of  the  Gulf  of  Mexico  within  the 
jurisdiction    of    Texas,    and    the    unsurveyed    public    free 
school  lands  shall  be  included  herein  and  shall  be  subject 
to  lease  by  the  Commissioner  of  the  General  Land  Office 
to  any  person,  firm  or  corporation  for  the  production  of  oil 
and  natural  gas  that  may  be  therein  or  thereunder  in  ac- 


134  Oil  and  Gas  Laws 

cordance  with  the  provisions  of  this  Act,  and  such  rules 
and  regulations  as  may  be  adopted  by  said  Commissioner 
as  being  necessary  to  the  proper  execution  of  its  purposes. 

Section  2.  The  areas  included  herein  shall  be  leased 
for  one-eighth  of  the  gross  production  of  oil,  or  the  value 
of  same,  that  may  be  produced  and  saved  and  one-eighth 
of  the  gross  production  of  gas,  or  the  value  of  same,  that 
may  be  produced  and  sold  off  of  the  area,  and  ten  cents 
per  acre  in  advance  the  first  year  and  thereafter  in  ad- 
vance an  additional  sum  of  twenty-five  cents  per  acre  for 
the  second  year,  and  fifty  cents  per  acre  for  the  third  year 
and  one  dollar  per  acre  for  each  and  every  year  thereafter, 
not  to  exceed  ten  years,  that  the  owner  of  the  lease  shall 
desire  to  hold  the  rights  granted  therein,  and  until  produc- 
tion is  secured  in  commercial  quantities,  and  in  addition 
thereto  such  sum  of  money,  if  any,  that  one  may  pay  there- 
for; provided,  whenever  production  shall  have  been  secur- 
ed in  commercial  quantities,  and  the  payment  of  royalty 
begins  and  continues  to  be  paid,  as  provided  herein,  the 
owner  shall  be  exempt  from  further  annual  payments  on 
the  acreage.  If  production  should  cease  and  royalty  not  be 
paid,  the  owner  of  the  lease  shall,  at  the  end  of  the  lease 
year  in  which  royalty  ceased  to  be  paid,  and  annually 
thereafter  in  advance  pay  one  dollar  per  acre  so  long  as 
such  owner  may  desire  to  maintain  the  rights  acquired 
under  the  lease  not  to  exceed  ten  years  from  the  date  of 
said  lease. 

Section  3.  The  Commissioner  of  the  General  Land 
Office  shall  fix  the  day  and  hour  when  an  area  or  areas 
will  be  subject  to  lease  and  he  shall  advertise  or  readver- 
tise  such  area  or  acreas  at  least  thirty  days  before  such 
lease  date,  except  as  elsewhere  provided  in  the  event  of  tie 
bids.  If  there  should  be  no  other  sufficient  means  for  giv- 
ing the  necessary  publicity  as  to  what  areas  will  be  subject 
to  lease  and  the  time  when  applications  may  be  filed  the 
Commissioner  shall  have  lists  of  such  areas  printed  for 
free  distribution  at  the  expense  of  the  State  which  expense 
shall  be  paid  out  of  the  appropriation  for  public  printing. 
Such  lists  shall  contain  a  brief  designation  of  the  areas 
subject  to  lease  and  the  terms  upon  which  they  may  be 


Oil  and  Gas  Laws  135 

leased   and  the   time   when   applications  therefor   may   be 
filed  in  the  General  Land  Office. 

Section  4.  Applications  for  separate  areas  and  the 
first  payment  of  ten  cents  per  acre  and  the  sum  offered  in 
addition  thereto,  if  any,  for  any  area  shall  be  delivered 
into  the  General  Land  Office  on  or  before  the  day  and 
hour  on  which  the  area  will  be  subject  to  lease  in  sealed 
envelopes  on  which  shall  be  endorsed  in  substance  "Appli- 
cation to  Lease  Minerals,"  and  in  addition  thereto  the  date 
the  area  will  be  subject  to  lease.  All  envelopes  so  en- 
dorsed shall  be  securely  kept  by  the  Commissioner  or  his 
chief  clerk  unopened  until  the  date  on  which  applications 
are  to  be  opened  and  at  said  hour  either  or  both  of  them 
shall  begin  to  open  the  envelopes  in  the  presence  of  such 
persons  as  may  desire  to  be  present.  All  applications  re- 
ceived up  to  the  opening  hour  whether  open  or  sealed, 
endorsed  or  not  endorsed,  shall  be  considered  as  properly 
delivered  into  the  General  Land  Office.  An  application 
which  includes  two  or  more  areas  or  is  for  a  price  less 
than  the  fixed  royalty  and  price  per  acre  shall  be  void. 
When  an  application  shall  have  been  filed  and  considered 
and  the  area  found  to  be  subject  to  lease,  the  lease  shall 
be  issued  for  a  term  not  to  exceed  twenty-five  years  to  the 
applicant  that  pays  the  most,  if  any  sum,  for  the  area  in 
addition  to  the  fixed  price  per  acre  and  the  stipulated  roy- 
alty. If  production  should  not  be  secured  in  ten  years  the 
lease  shall  terminate  and  the  area  again  be  subject  to  lease 
as  in  the  first  instance.  A  duplicate  of  the  lease  shall  be 
kept  on  file  in  the  General  Land  Office.  If  two  or  more 
persons  should  offer  the  same  price  for  the  same  area  and 
the  same  should  be  the  highest  price  offered,  all  shall  be 
rejected  and  a  date  fixed  within  the  discretion  of  the 
Commissioner,  but  not  later  than  the  fifteenth  day  of  the 
following  month,  when  the  area  will  be  subject  to  lease 
as  in  the  first  instance ;  provided,  if  the  time  so  fixed  should 
be  a  date  prior  to  the  said  fifteenth  day  of  the  next  month 
an  application  at  a  price  less  than  the  former  sum  offered 
shall  not  be  considered.  All  sums  paid  upon  rejected  appli- 
cations shall  be  returned  by  the  State  Treasurer. 

Section  5.  For  the  purpose  of  executing  the  provis- 
ions of  this  Act  to  the  best  interest  of  the  State  the  Com- 
missioner of  the  General   Land  Office  may  recognize  or 


136  Oil  and  Gas  Laws 

decline  to  recognize  any  survey  or  surveys  heretofore  made 
of  any  area  included  herein.  Such  survey  as  may  be  so 
recognized  shall  be  advertised  and  shall  be  subject  to  a 
lease  as  a  v^^hole.  Such  surveys  as  may  not  be  so  recog- 
nized shall  be  deemed,  together  with  all  adjacent  unsurvey- 
ed  areas,  as  one  unsurveyed  area,  and  the  said  Commis- 
sioner shall  advertise  the  whole  or  designated  portions 
thereof  for  lease  and  such  whole  area  or  designated  por- 
tions thereof  as  may  be  so  advertised  shall  be  subject  to 
lease  as  a  whole  according  to  the  advertisement;  provided, 
field  notes  for  such  mT^urveyed  area  may,  in  the  discretion 
of  the  Commissioner,  be  required  before  a  lease  is  issued 
therefor. 

Section  6.  Royalty  equal  to  one-eighth  of  the  value  of 
the  gross  production,  as  herein,  provided,  shall  be  paid  to 
the  State  on  or  before  the  twentieth  day  of  each  month  for 
the  preceding  month  during  the  life  of  the  lease,  and  it 
shall  be  accompanied  by  the  sworn  statement  of  the  owner, 
manager,  or  other  authorized  agent,  showing  the  gross 
amount  of  oil  produced  and  saved  since  the  last  report,  and 
the  amount  of  gas  produced  and  sold  off  the  area,  and  the 
market  value  of  the  oil  and  gas  together  with  a  copy  of 
all  daily  gauges  of  tanks,  gas  meter  readings,  if  any,  pipe 
line  receipts,  gas  line  receipts  and  other  checks  or  memo- 
randa of  amount  produced  and  put  into  pipe  lines,  tanks, 
or  pools,  and  gas  lines  or  gas  storage.  The  books  and 
accounts,  the  receipts  and  discharges  of  all  lines,  tanks, 
pools  and  meters,  and  all  contracts  and  other  records,  per- 
taining to  the  production,  transportation,  sale  and  market- 
ing of  the  oil  and  gas  shall  at  all  times  be  subject  to  in- 
spection and  examination  by  the  Commissioner  of  the  Gen- 
eral Land  Office,  the  Attorney  General,  the  Governor,  or 
the  representative  of  either. 

Section  7.  Royalty  and  all  other  sums  shall  be  due 
and  payable  to  the  State  at  Austin,  Texas,  and  shall  be 
paid  to  the  Commissioner  of  the  General  Land  Office  and 
he  shall  transmit  all  remittances  in  the  form  received  to 
the  State  Treasurer  who  shall  credit  the  permanent  free 
school  fund  with  all  amounts  received  from  the  unsurveyed 
school  lands  and  with  two-thirds  of  the  amount  so  received 
from  other  areas  and  shall  credit  the  general  revenue  fund 


Oil  and  Gas  Laws  137 

with  the  remaining  one-third  from  said  other  areas.  All 
payments  shall  be  in  the  form  of  cash,  bank  draft  on  some 
State  or  National  Bank  in  Texas,  or  Postoffice  or  express 
money  order,  or  such  other  form  as  may  be  prescribed  by 
law,  for  making  remittances  to  the  State  Treasury. 

Section  8.  The  State  shall  have  a  first  lien  upon  all 
oil  and  gas  produced  upon  any  leased  area  to  secure  the 
payment  of  all  unpaid  royalty  and  other  sum  of  sums  of 
money  that  may  be  due  and  become  due  under  the  pro- 
visions of  this  Act. 

Section  9.  If  oil  or  gas  should  be  produced  in  com- 
mercial quantities  in  a  well  on  an  area  privately  owned 
which  well  should  be  within  one  thousand  feet  of  an  area 
leased  under  this  Act,  the  owner  of  the  lease  on  such  State 
area  shall,  within  sixty  days  after  the  initial  production  on 
ruch  privately  owned  area,  begin  in  good  faith  and  prose- 
cute diligently  the  drilling  of  an  offset  well  or  wells  on 
the  area  so  leased  from  the  State  and  such  offset  well  or 
wells  shall  be  drilled  to  such  depth  and  use  such  means 
aB  may  be  necessary  to  prevent  the  undue  drainage  of  oil 
or  gas  from  beneath  such  State  area.  A  log  of  each  well, 
whether  producer  or  non-producer,  shall  be  filed  in  the 
General  Land  Office  within  thirty  days  after  the  well  has 
been  completed  or  abandoned. 

Section  10.  The  development  of  wells  and  the  devel- 
opment and  operation  upon  the  areas  included  herein  shall 
be  done  so  far  as  practicable  in  such  manner  as  to  prevent 
such  pollution  of  the  water  as  will  destroy  fish,  oysters  and 
other  sea  food  and  it  shall  be  the  duty  of  the  Game,  Fish 
and  Oyster  Commissioner  to  enforce  such  rules  and  regu- 
lationse  as  may  be  prescribed  for  that  purpose  by  the  Com- 
missioner of  the  General  Land  Office. 

Section  11.  One  may  transfer  his  lease  at  any  time 
and  such  transfer  shall  be  recorded  in  the  county  or  coun- 
ties in  which  the  area  or  part  thereof  is  situated  and  with- 
in ninety  days  after  the  date  of  its  execution  the  recorded 
transfer  or  certified  copy  of  same  shall  be  filed  in  the 
General  Land  Office  accompanied  by  one  dollar  as  filing 
fee,  and  thereby  the  assignee  shall  succeed  to  all  the  rights 
and  be  subject  to  all  the  obligations  and  penalties  of  the 
original  lessee.     An  owner  may  relinquish  his  lease  to  the 


138  Oil  and  Gas  Laws 

State  at  any  time  by  having  the  relinquishment  recorded  in 
the  county  or  counties  in  which  the  area  or  part  thereof 
is  situated  and  within  ninety  days  after  the  date  of  its 
execution  the  recorded  relinquishment  or  certified  copy  of 
same  shall  be  filed  in  the  General  Land  Office  accompanied 
by  one  dollar  as  filing  fee,  and  thereby  the  owner  of  such 
lease  shall  be  relieved  of  any  further  obligations  to  the 
State,  but  such  relinquishment  shall  not  have  the  effect  to 
release  the  owner  from  any  obligations  or  liabilities  there- 
tofore accrued  in  favor  of  the  State. 

Section  12.  If  the  owner  of  a  lease  should  fail  or 
refuse  to  make  the  payment  of  any  sum  due  either  on  the 
area  or  royalty  on  the  production  within  thirty  days  after 
same  shall  become  due,  or  if  such  owner  or  his  authorized 
agent  should  knowingly  make  any  false  return  or  false 
report  concerning  production,  royalty,  or  drilling,  or  if 
such  owner  should  fail  or  refuse  to  drill  any  offset  well 
or  wells  in  good  faith  as  required  by  this  Act  and  the  niles 
and  regulations  adopted  by  the  Commissioner  of  the  Gener- 
al Land  Office,  or  if  such  owner  or  his  agent  should  refuse 
the  proper  authority  access  to  the  records  pertaining  to  the 
operations  under  this  Act,  or  if  such  owner  or  his  author- 
ized agent  should  knowingly  fail  or  refuse  to  give  correct 
information  to  the  proper  authority,  or  fail  or  refuse  to 
furnish  the  log  of  any  well  as  provided  herein,  such  lease 
shall  be  subject  to  forfeiture  by  the  Commissioner  of  the 
General  Land  Office  and  when  sufficiently  informed  of 
the  facts  which  authorize  a  forfeiture,  the  Commissioner 
of  the  General  Land  Office  shall  forfeit  same,  and  the 
area  shall  be  subject  to  lease  again  to  another  tharj  to 
such  forfeiting  owner  after  due  advertisement ;  provided, 
such  forfeiture  may  be  set  aside  and  the  lease  and  all 
rights  thereunder  reinstated  before  the  rights  of  anoi.her 
interervene  upon  satisfactory  evidence  of  future  com- 
pliance with  the  provisions  of  this  Act  and  the  rules  iind 
regulations  authorized  to  be  adopted  for  the  purpose,  of 
executing  its  provisions. 

Section  13.  Whenever  it  may  be  necessary  for  the 
owner  of  a  lease  acquired  under  this  Act  to  enter  the  en- 
closed land  of  another  for  the  purpose  of  ingress  tnd 
egiess  to  and  from  the  area  so  leased  from  the  State  and 


Oil  and  Gas  Laws  139 

such  lessee  ana  the  owner  ot  enclosure  or  agent  of  such 
owner  cannot  agree  upon  the  place  of  such  entry,  nor  the 
conditions  of  such  entry,  the  lessee  or  his  agent  may  peti- 
tion the  commissioners  court  of  the  county  or  counties  in 
which  such  enclosure  may  be  situated  in  whole  or  in  part 
for  the  opening  of  such  way  of  ingress  and  egress  afore- 
said as  may  be  necessary.  Upon  the  filing  of  such  peti- 
tion it  shall  be  the  duty  of  said  court  or  courts  to  proceed 
to  lay  out  and  establish  in  the  manner  provided  for  the 
Irying  out  of  third  class  public  roads,  such  road  or  roads 
as  may  be  necessary  for  the  purposes  named  herein. 

Section  14.  Nothing  in  this  Act  shall  be  construed  to 
affect  or  impair  valid  rights  that  may  have  been  acquired 
by  virtue  of  any  valid  application  heretofore  filed  nor  any 
valid  permit  or  lease  heretofore  issued  upon  any  area  in- 
cluded in  this  Act,  but  such  rights,  obligations,  and  pen- 
alties attaching  thereto  shall  remain  in  full  force  and 
effect  so  far  as  it  may  relate  to  the  areas  included  herein. 

Section  15.  So  much  of  Chapter  83,  of  an  Act  ap- 
proved March  16,  1917,  as  relates  to  the  leasing  of  the 
ari,as  included  in  this  Act  is  hereby  repealed  so  far  as  it 
ircludes  and  provides  for  the  leasing  of  said  areas. 

Section  16.  The  importance  of  the  legislation  pro- 
posed and  the  short  term  of  this  Special  Session  creates 
an  emergency  and  an  imperative  public  necessity  exists 
that  the  constitutional  rule  requiring  bills  to  be  read  on 
three  separate  days  in  each  House  should  be  suspended 
aiid  that  this  bill  be  placed  upon  third  reading  and  final 
final  passage  and  that  it  take  effect  from  and  after  its 
passage. 


140  Oil  and  Gas  Laws 

LAWS  OF  TEXAS.  GENERAL  LAWS  OF  THE  37TH 

LEGISLATURE,  PAGE  7. 
ACTS  OF  THE  REGULAR  SESSION.  37TH  LEGIS- 
LATURE. 

An  Act,  extending  for  a  period  of  five  years  from  the  date 
of  the  permit,  on  certin  specified  conditions,  all  permits 
to  prospect  for  oil  and  gas  heretofore  issued  on  Uni- 
versity land,  and  Public  School  land  v^hich  is  unsold  at 
the  time  this  Act  goes  into  effect,  and  river  beds  or 
channels  and  fresh  water  lakes  and  islands  therein, 
which  have  not  expired,  and  extending  for  a  like  period 
and  on  like  conditions  all  permits  to  prospect  for  oil 
and  gas  heretofore  issued  on  said  land  and  said  areas 
and  all  permits  to  prospect  for  oil  and  gas  heretofore 
issued  after  the  Mineral  Act  of  1917  went  into  effect, 
on  island,  salt  water  lakes,  bays,  inlets,  marshes  and 
reefs  owned  by  the  State  of  Texas  within  tide  water 
limits  and  that  portion  of  the  Gulf  of  Mexico  within 
the  jurisdiction  of  Texas,  which  permits  have  expired 
at  the  time  this  Act  goes  into  effect,  but  on  which  the 
drilling  of  a  well  or  wells  has  been  begun  in  good  faith 
or  with  reference  to  which  permits  and  the  right  of  the 
owner  of  the  same  to  the  possession  of  the  area  included 
therein  bona  fide  litigation  has  existed  during  the  whole 
or  a  part  of  the  term  of  the  permit;  providing  that  said 
permits  are  extended  on  the  condition  that  the  CA^ner 
pay  to  the  State  annually  in  advance,  during  the  life  of 
the  permit,  ten  cents  per  acre,  and  all  past  due  pay- 
ments, and  that  the  owner  of  the  permit  shall  drill,  at  the 
direction  of  the  Commissioner  of  the  General  Land  Of- 
fice, such  offset  well  or  wells  as  may  be  necessary  to 
protect  the  State's  interests  in  the  area  included  in  the 
permit,  and  shall  resume  and  diligently  continue  drilling 
already  begun ;  and  authorizing  the  Commissioner  of  the 
Land  Office  to  forfeit  the  permit  for  the  failure  to  make 
the  payments  aforesaid  or  to  drill  the  offset  well  or  wells 
or  to  resume  or  continue  drilling;  providing,  that,  if  oil 
or  gas  should  bt  produced  in  paying  quantities,  the 
owner  of  the  permit  shall  apply  for  and  obtain  a  lease 
upon  the  area  without  the  payment  of  any  additional 


Oil  and  Gas  Laws  141 

sura  of  money  and  for  a  period  not  to  exceed  ten 
years,  subject  to  renewal  or  renewals-,  providing  for  the 
filing  of  affidavits  with  reference  to  drilling  or  pendency 
of  litigation,  and  declaring  an  emergency. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  That  all  permits  to  prospect  for  oil  and  gas, 
heretofore  issued  on  University  land,  and  Public  School 
land  which  is  unsold  at  the  time  this  Act  goes  into  effect, 
river  beds  or  channels  and  fresh  water  lakes  and  islands 
therein,  and  which  have  not  expired,  be  and  they  are 
hereby  extended  so  that  they  shall  remain  in  full  force 
and  effect  for  a  period  of  five  years  from  the  date  of  the 
issuance  of  the  permit,  conditioned  only  upon  compliance 
with  the  terms  of  this  Act.  And  that  all  permits  to  pros- 
pect for  oil  and  gas,  heretofore  issued  on  said  land  and 
areas  and  all  permits  heretofore  issued  after  the  Mineral 
Act  of  1917  went  into  effect  on  salt  water  lakes,  bays, 
inlets,  marshes,  reefs  and  islands  owned  by  the  State 
within  tide  water  limits  and  that  portion  of  the  Gulf  of 
Mexico  within  the  jurisdiction  of  Texas,  which  have  ex- 
pired at  the  time  this  Act  goes  into  effect,  but  on  which 
the  drilling  of  a  well  or  wells,  has  been  begun  in  good 
faith,  or  with  reference  to  which  permits  and  the  right 
of  the  owner  of  the  same  to  the  possession  of  the  area 
included  therein  bona  fide  litigation  has  existed  during  the 
whole  or  a  part  of  the  term  of  the  permit,  be  and  the 
same  are  hereby  revived  and  extended  so  that  they  shall 
remain  in  full  force  and  effect  for  a  period  of  five  years 
from  the  date  of  the  issuance  of  the  permit,  conditioned 
only  upon  compliance  with  the  terms  of  this  Act. 

Section  2.  The  owner  of  a  permit  included  in  this  Act 
shall  pay  to  the  State  annually  in  advance  during  the  life 
of  the  permit  ten  cents  for  each  acre  included  therein 
and  if  there  should  be  any  payments  past  due  under  the 
terms  of  the  original  permit  such  sum  shall  be  paid  within 
sixty  days  after  this  Act  becomes  effective  and  if  not  so 
paid  the  term  of  such  permit  shall  not  be  extended  herein. 
The  Commissioner  of  the  General  Land  Office  may,  when 
necessity  occasions,  direct  the  owner  of  a  permit  included 
in  this  Act  to  drill  such  offset  well  or  wells  as  may  be 


142  Oil  and  Gas  Laws 

necessary  for  the  protection  of  the  State's  interest  in  the 
area  included  herein.  The  owner  of  a  permit  revived  and 
extended  herein  on  which  the  drilHng  of  a  well  had  been 
begun  shall  resume  such  drilling  m  good  faith  within  such 
reasonable  time  after  the  taking  effect  of  this  Act  as  may 
be  fixed  by  the  Commissioner  of  the  General  Land  Office 
and  continue  same  diligently  and  in  good  faith. 

Section  3.  The  failure  to  make  the  payment  of  the  ten 
cents  per  acre  within  the  time  prescribed  herein  for  past 
due  payments  or  the  failure  to  make  future  annual  pay- 
ments within  thirty  days  after  same  become  due  or  the 
failure  to  drill  such  offset  well  or  wells  as  may  be  directed 
by  the  Commissioner  of  the  General  Land  Office  or  the 
failure  to  resume  drilling  in  good  faith  on  expired  permits 
which  are  revived  and  extended  herein  within  such  rea- 
sonable time  as  may  be  fixed  by  the  said  Commissioner  or 
the  failure  to  continue  such  drilling  diligently  and  in  good 
faith  shall  subject  the  permit  to  forfeiture  by  the  Com- 
missioner of  the  General  Land  Office  and  when  sufficiently 
informed  of  the  facts  which  render  the  permit  subject  to 
forfeiture  the  said  Commissioner  shall  forfeit  such  permit 
by  an  endorsement  upon  the  wrapper  in  the  General  Land 
Office  containing  the  papers  relating  thereto  and  sign  it 
officially.  A  notice  of  such  forfeiture  shall  be  mailed  to 
the  Clerk  of  the  county  in  which  such  area  is  situated, 
and  when  such  notice  has  been  received  by  said  Clerk,  the 
area  shall  again  be  subject  to  be  acquired  in  the  manner 
then  provided  by  the  law  relating  to  such  area. 

Section  4.  If  oil  or  gas  should  be  produced  in  paying 
quantities  upon  the  area  included  in  any  of  the  permits 
included  in  this  Act,  the  owner  of  the  permit  shall  report 
the  development  to  the  Commissioner  of  the  General  Land 
Office  within  thirty  days  thereafter,  and  apply  for  a 
lease,  accompanying  the  application  with  a  correct  log  of 
the  well  or  wells,  and  thereupon  a  lease  shall  be  issued 
without  the  payment  of  any  additional  sum  of  money  and 
for  a  period  not  to  exceed  ten  years,  subject  to  renewal  or 
renewals. 

Section  5.  The  owner  of  a  permit  which  has  expired 
at  the  time  this  Act  goes  into  effect  shall  file  in  the  General 


Oil  and  Gas  Laws  143 

Land  Office,  within  sixty  days  after  this  Act  goes  into 
effect,  his  affidavit  showing  the  facts  with  reference  to  the 
beginning  of  the  drilHng  of  a  well  or  the  pendency  of  hti- 
gation,  and  in  the  event  such  owner  fails  to  file  such  affi- 
davit within  said  time  he  shall  not  be  entitled  to  the  benefits 
of  this  Act. 

Section  6.  Nothing  in  this  Act  shall  be  construed  to  ap- 
ply to  permits  heretofore  issued  upon  any  Free  School  land 
that  has  heretofore  been  sold  and  which  sales  are  now  in 
force. 

Section  7.  The  fact  that  many  owners  of  permits  in- 
cluded in  this  Act  have,  in  good  faith,  spent  large  sums  of 
money  in  developing  the  area  included  in  their  permits, 
and  have  been  unable,  on  account  of  unforeseen  obstacles 
and  on  account  of  the  short  duration  of  the  term  of  the 
permits,  to  complete  the  development;  and  that  a  grave 
injustice  would  be  done  such  owners  if  the  permits  were 
permitted  to  lapse,  and  the  fact  that  the  term  of  the  per- 
mits is  too  short  to  secure  adequate  development  of  the 
mineral  resources  of  the  State,  creates  an  emergency  and 
an  imperative  public  necessity  exists  that  the  constitutional 
rule,  which  requires  bills  to  be  read  on  three  several  days 
in  each  House,  be  suspended  and  that  this  bill  be  placed 
upon  its  third  reading  and  final  passage,  and  that  it  takes 
eflFect  from  and  after  its  passage ;  and  it  is  so  enacted. 


144  Oil  and  Gas  Laws  ' 

REGULAR  SESSION  37TH  LEG-    PAGE  12L 
OIL    AND    GAS— PROVIDING    FOR  THE  EXTEN- 
SION OF  TIME  IN  WHICH  TO  DEVELOP. 

S-B.  No.  117.]  Chapter  58. 

An  Act  to  provide  for  the  extension  of  time  in  which  to  de- 
velop oill  and  gas  under  permits  heretofore  issued  under 
the  Mineral  Act  of  1917  upon  islands,  salt  water  lakes, 
bays,  inlets,  marshes  and  reefs,  owned  by  the  State  of 
Texas  within  tide  water  limits  and  that  portion  of  the 
Gulf  of  Mexico  within  the  jurisdiction  of  Texas,  and 
declaring  an  emergency. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas : 

Section  1.  That  all  permits  to  prospect  for  oil  and  gas 
heretofore  issued  under  the  Mineral  Act  of  1917  on  islands, 
salt  water  lakes,  bays,  inlets,  marshes  and  reefs,  owned  by 
the  State  of  Texas  within  tide  water  limits,  and  that  portion 
of  the  Gulf  of  Mexico  within  the  jurisdiction  of  Texas,  and 
which  permits  have  not  been  cancelled  and  have  not  expired, 
be  and  they  are  hereby  extended  so  that  they  shall  remain 
in  full  force  and  effect  for  a  period  of  five  years  from  the 
date  of  the  issuance  of  the  permit  conditioned  only  upon 
compliance  with  the  terms  of  this  Act. 

Section  2.  The  owner  of  a  permit  included  in  this  Act 
shall  pay  to  the  State  annually  in  advance  during  the  life 
of  the  permit,  ten  cents  for  each  acre  included  therein  and 
if  there  should  be  any  payments  past  due  under  the  terms  of 
the  original  permit,  such  sum  shall  be  paid  within  sixty  days 
after  this  Act  becomes  effective  and  if  not  so  paid,  the  term 
of  such  permit  shall  not  be  extended  herein.  The  Commis- 
sioner of  the  General  Land  Office  may,  when  necessity  oc- 
casions, direct  the  owner  of  the  permit  included  in  this  Act 
to  drill  such  offset  well  or  wells  as  may  be  necessary  for  the 
protection  of  the  State's  interest  in  the  area  included  herein. 
The  owner  of  a  permit  revived  and  extended  herein  on 
which  the  drilling  of  a  well  had  been  begun,  shall  resume 
such  drilling  in  good  faith  within  such  reasonable  time  after 
the  taking  effect  of  this  Act  as  may  be  fixed  by  the  Commis- 
sioner of  the  General  Land  Office  and  continue  same  diH- 
gently  and  in  good  faith. 


Oil  and  Gas  Laws  145 

Section  3.  The  failure  to  make  the  payment  of  the 
ten  cents  per  acre  within  the  time  prescribed  herein  for  past 
due  payments  or  for  failure  to  make  future  annual  pay- 
ments within  thirty  days  after  same  becomes  due,  or  the 
failure  to  drill  such  offset  well  or  wells  as  may  be  directed 
by  the  Commissioner  of  the  General  Land  Office,  and  when 
sufficiently  informed  of  the  facts  which  render  the  permit 
subject  to  forfeiture  the  said  Commissioner  shall  forfeit 
such  permit  by  an  endorsement  upon  the  wrapper  in  the 
General  Land  Office  containing  the  papers  relating  thereto 
and  sign  it  officially-  A  notice  of  such  forfeiture  shall  be 
mailed  to  the  clerk  of  the  county  in  which  such  area  is 
situated  and  when  such  notice  has  been  received  by  said 
clerk,  the  area  shall  again  be  subject  to  be  acquired  in  the 
manner  then  provided  by  the  law  relating  to  such  area. 


146  Oil  and  Gas  Laws 

GENERAL  LAWS   OF  TEXAS.   FOURTH  CALLED 

SESSION,  36TH  LEGLSLATURE,  PAGE  5. 

UNIVERSITY  LANDS  — AUTHORIZING  OWNERS 

OF  OIL  AND  GAS  PERMITS  TO  DESIGNATE 

UNIVERSITY  LAND  OIL  AND  GAS 

DEVELOPMENT  AREAS. 

S.B.N.  11.]  Chapter  4. 

An  Act  authorizing  the  owner  or  owners  of  an  oil  and  gas 
permit  heretofore  issued  by  the  State  of  Texas  covering 
University  land,  who,  individually  or  in  co-operation 
with  the  holders  of  permits  covering  other  University 
land,  has  or  have  performed  certain  development  work 
thereunder,  to  designate  within  sixty  days  from  the  date 
this  Act  takes  effect  what  shall  be  known  as  a  University 
land  oil  and  gas  development  area  to  consist  of  not  to 
exceed  six  contiguous  blocks  of  University  land ;  pro- 
viding for  the  extension  of  permits  covering  the  lands 
included  in  such  area  for  a  period  of  five  years  from  the 
date  of  the  last  permit  issued  on  land  included  therein, 
and  providing  that  all  development  work  may  be  com- 
menced and  completed  within  said  time ;  providing  for 
the  Issuance  of  leases  on  certain  quantities  of  land  in- 
cluded in  such  area  if  oil  or  gas  in  commercial  quantities 
is  discovered  thereon  during  the  life  of  such  development 
area;  providing  that  this  Act  shall  not  apply  to  school 
land ;  repealing  all  Acts  and  parts  of  Acts  in  conflict 
herewith  ;  and  declaring  an  emergency. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  The  owner  or  owners  of  a  permit  hereto- 
fore issued  by  the  State  of  Texas  permitting  the  holder  or 
holders  to  prospect  for  oil  and  gas  on  University  land  under 
the  provisions  of  the  existing  laws,  who,  at  the  time  this 
Act  takes  effect,  individually  or  in  co-operation  with  the 
holders  of  permits  covering  other  University  land,  at  some 
point  upon  the  land  covered  by  such  permit,  has  or  have 
drilled  a  well  to  a  depth  of  at  least  two  thousand  feet,  shall 
have  the  privilege  of  filing  with  the  Commissioner  of  the 
General  Land  Ofifice,  within  sixty  days  from  the  date  on 
which  this  Act  goes  into  effect    an  instrument  in  writing 


Oil  and  Gas  Laws  147 

designating  what  shall  be  called  a  University  land  oil  and 
gas  development  area,  which  area  shall  consist  of  not  to 
exceed  six  contiguous  blocks  of  University  land ;  provided 
that  the  holders  of  the  permits  covering  land  included  in 
such  development  area,  prior  to  the  designation  thereof, 
shall  have  directly  or  indirectly  contributed  to  the  expense 
of,  or  co-operated  in  the  drilling  of  the  above  mentioned 
well,  or  an  additional  well  or  wells  located  or  to  be  located 
within  said  area.  Said  instrument  shall  be  signed  and  ac- 
knowledged by  the  owner  or  owners  of  the  permit  covering 
the  land  on  which  said  well  has  been  drilled,  and  a  filing  fee 
of  one  dollar  shall  be  paid  the  Commissioner  of  the  General 
Land  Office  for  filing  the  same.  There  shall  be  included 
in  such  instrument,  or  attached  thereto,  an  affidavit  of  at 
least  three  credible  persons,  citizens  of  the  State  of  Texas, 
showing  the  existence  of  the  facts  required  for  the  designa- 
tion of  such  development  area. 

Section  2.  From  and  after  the  designation  of  any  such 
University  land  oil  and  gas  development  area,  all  permits 
covering  land  therein  which  at  the  time  of  such  designation 
are  still  in  force,  upon  the  payment  in  advance  of  the  ten 
cents  per  acre  per  annum  as  now  provided  by  law,  may  con- 
tinue in  force  for  a  term  not  to  exceed  five  years  from  the 
date  of  the  last  permit  issued  on  any  of  the  land  included 
in  any  such  development  area,  and  all  development  work 
may  be  commenced  and  completed  within  the  said  period 
of  five  years ;  provided,  if  such  payment  should  not  be  so 
made  on  any  permit  included  in  such  area,  such  permit  in 
arrears  shall  be  cancelled  by  the  Commissioner  of  the  Gen- 
eral Land  Office. 

Section  3.  Should  oil  or  gas  in  commercial  quantities 
be  discovered  during  the  life  of  such  development  area  or 
a  portion  thereof,  a  lease  may  be  issued  on  one  or  more  con- 
tiguous permits  not  to  exceed  sixteen  sections,  for  each  dis- 
covery well  as  now  provided  by  law.  The  owner  or  own- 
ers of  a  permit  or  permits  within  such  development  area 
may  relinquish  one  or  more  whole  sections  or  the  equivalent 
thereof,  in  a  solid  body  of  regular  form  at  any  time  before 
applying  for  a  lease  by  having  the  relinquishment  recorded 


148  Oil  and  Gas  Laws 

in  the  county  where  the  land  is  located  and  filed  in  the  Gen- 
eral Land  Office  accompanied  by  a  filing  fee  of  one  dollar. 

Section  4.  This  Act  is  not  intended  to  and  shall  not  be 
construed  to  apply  to  public  free  school  land. 

Section  5.  All  laws  and  parts  of  laws  that  conflict  with 
this  Act  are  hereby  repealed. 

Section  6.  The  fact  that  it  is  practically  impossible  to 
secure  the  proper  development  of  the  oil  and  gas  in  the 
State  University  land  under  the  present  law,  a  development 
which  is  highly  desirable  and  greatly  needed  at  this  time, 
and  the  near  approach  of  the  close  of  this  session  creates 
an  emergency,  and  an  imperative  public  necessity  exists 
that  the  Constitutional  rule  that  requires  bills  to  be  read  on 
three  several  days  in  each  House  be  suspended,  and  that  this 
Act  take  effect  from  and  after  its  passage,  and  it  is  so  en- 
acted. 

Approved  October  2,  1920. 

Effective  October  2,  1920. 


Oil  and  Gas  Laws  149 

Miscellaneous  Laws 


GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  183. 

AUTHORIZING  CITIES  AND  TOWNS  TO  LEASE 

FOR  OIL  OR  OTHER  MINERALS  AND  LANDS 

OWNED  BY  SUCH  CITY  OR  TOWN 

WITH  EXCEPTIONS. 

S.  B.  No.  169.]  Chapter  117. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas : 

Section  1.  Any  town  or  City  in  this  State,  which  has 
been,  or  may  hereafter  be  chartered  or  organized,  u»vder 
the  General  Laws  of  Texas,  or  by  Special  Act  or  Cha/ter, 
in  which  said  City  or  town  may  own  oil  or  mineral  lands, 
shall  have  the  power  and  right  to  lease  such  oil  or  mineral 
lands  for  the  benefit  of  such  town  or  city,  provided  that 
such  town  or  city  shall  not  lease  for  such  purpose  any 
street  or  alley  or  public  square  in  said  town  or  city,  or 
any  land  therein  dedicated  by  any  person  or  persons  to 
public  uses  in  such  town  or  city;  and  provided  further 
that  no  well  shall  be  drilled  within  the  thickly  settled  por- 
tion of  any  city  or  town,  nor  within  two  hundred  (200) 
feet  of  any  private  residence. 

Section  2.  Any  laws  or  parts  of  Laws  in  conflict 
herewith  are  hereby  repealed. 

Section  3.  The  importance  of  this  legislation  and  the 
fact  that  this  is  a  regular  session  of  the  legislature  at 
which  the  calender  will  be  in  a  crowded  condition,  creates 
an  emergency  and  an  imperative  public  necessity  which 
requires  that  the  constitutional  rule  providing  that  bills 
shall  be  read  on  three  several  days  in  each  House  be  sus- 
pended and  that  the  same  is  hereby  suspended  and  this  Act 
shall  take  effect  and  be  in  force  from  and  after  its  passage 
and  it  is  so  enacted. 

Approved  March  24,  1919. 

Becomes  effective  90  days  after  adjournment. 


150  Oil  and  Gas  Laws 

GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  3n. 

RELATING  TO  INJUNCTIONS  RESTRAINING 

THE  DRILLING  FOR  OIL  OR  OTHER 

MINERALS. 

S.  B.  No.  319.]  Chapter   162. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  That  Title  69  of  the  Revised  Civil  Statutes 
of  this  State  be  amended  by  adding  immediately  following 
Article  4643  a  new  Article  to  be  known  as  Article  4643A 
as  to  read  as  follows ;  to-wit : 

Article  4643A.  No  injunction  or  temporary  restraining 
order,  shall  be  issued  by  any  judge  of  this  State  prohibit- 
ing any  sub-surface  drilling  or  mining  operations  on  the 
application  of  any  adjacent  land  owner,  claiming  injury  to 
his  surface  or  improvements,  or  loss  of,  or  injury  to  the 
minerals  thereunder,  unless  the  person,  corporation  of 
partnership  against  whom  drilling  or  mining  operations  is 
alleged  as  a  wrongful  act  is  shown  to  be  unable  to  re- 
spond in  damages  for  any  injury  that  may  result  from 
drilling  or  mining  operations;  provided,  however,  that  the 
person,  corporation  or  partnership  against  whom  such 
injunction  is  sought  shall  enter  into  a  bond  with  one  or 
more  sufficient  sureties,  in  such  sum  as  the  judge  hearing 
the  said  application  and  having  jurisdiction  thereof  shall 
fix,  securing  the  complainant  in  the  payment  of  any  in- 
juries that  may  be  sustained  by  such  complainant  as  the 
result  of  such  drilling  or  mining  operations ;  provided,  that 
the  court  may,  when  he  deems  it  necessary  to  protect  any 
or  all  interest  involved  in  such  litigation,  in  lieu  of  such 
bond,  appoint  a  trustee  with  such  powers  as  the  court 
may  prescribe  or  appoint  a  receiver  under  the  provisions 
of  the  statute,  to  take  charge  of  and  hold  the  minerals 
produced  from  the  land  of  the  complainant  or  the  pro- 
ceeds thereof  subject  to  the  final  disposition  of  such  liti- 
gation. 

Section  2.  The  crowded  condition  of  the  Legislative 
calendar  and  the  importance  of  this  Legislation,  creates 
an  emergency  and  an  imperative  public  necessity  that  the 


Oil  and  Gas  Laws  151 

Constitutional  rule  requiring  that  bills  be  read  on  three 
several  days  be  suspended,  and  the  same  is  hereby  sus- 
pended, and  that  this  Act  shall  take  effect  and  be  in 
force  from  and  after  its  passage,  and  it  is  so  enacted. 

Approved  April  3,  1919. 

Becomes  effective  90  days  after  adjournment. 


152  Oil  and  Gas  L^aws 

GENERAL  LAWS,  35TH  LEGISLATURE,  PAGE  295. 

PROVIDING  FOR  PARTITION  OF  OIL  AND 

MINERAL  LANDS. 

S.  B.  No.  368.]  Chapter  105. 

Be  it  erxacted  by  the  Legislature  of  the  State  of  Texas : 

Section  1.  That  Article  6096,  Chapter  1,  Title  101,  of 
the  Revised  Civil  Statutes  of  the  State  of  Texas  is  hereby 
so  amended  that  it  shall  hereafter  read  as  follows: 

"Article  6096.  Any  joint  owner  or  claimant  of  any 
real  estate  or  of  any  interest  therein  or  of  any  mineral, 
coal,  petroleum,  or  gas  lands,  whether  held  in  fee  or  by 
lease  or  otherwise,  may  compel  a  partition  thereof  between 
the  other  joint  owners  or  claimants  thereof  in  the  manner 
provided  in  the  succeeding  articles  of  this  chapter." 

Section  2.  From  the  fact  that  there  is  no  law  by 
which  joint  owners  or  claimants  of  mineral,  coal,  petro- 
leum, or  gas  lands,  whether  held  in  fee  or  by  lease,  can 
compel  partition  thereof,  an  emergency  is  created  and  an 
iniperative  public  necessity  exists  requiring  the  suspen- 
sion of  the  constitutional  rule  requiring  bills  to  be  read 
on  three  several  days  and  it  is  hereby  suspended  and  this 
act  shall  take  effect  and  be  in  full  force  from  and  after 
its  passage,  and  it  is  so  enacted. 

Approved  March  28,  1917. 

Became  a  law  March  28,   1917. 


Oil  and  Gas  Laws  153 

GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  185. 
AUTHORIZING  GUARDIANS  TO  MAKE  MINERAL 
LEASES  ON  REAL  ESTATE  OF  THEIR  WARDS, 
AND  REPEALING  CHAPTER  44  OF  THE 
GENERAL  LAWS  OF  THE  THIRTY- 
FOURTH  LEGISLATURE. 

H.  B.  No.  189.J  Chapter  119. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas : 

Section  1 .  That  the  guardians  of  the  estates  of  minors 
or  any  other  persons,  appointed  under  the  laws  of  the 
State  of  Texas,  who  have  heretofore  been  appointed  or 
who  may  hereafter  be  appointed,  shall  have  the  author- 
ity to  make  mineral  leases  upon  the  real  estate  belonging 
to  the  estates  of  their  wards. 

Section  2.    That  whenever  a  guardian  of  the  estate  of 
any  persons  shall  desire  to  make  a  mineral  lease  upon  the 
real  estate  of  his  ward,  he  shall  apply  to  the  county  judge 
of  the  county  where  such  guardianship  is  pending  for  au- 
thority to  make  and  execute  such  mineral  lease,  and  such 
application  shall  be  in  writing  and  sworn  to  by  such  guar- 
dian, and  the  county  judge,  either  in  term  time  or  vaca- 
tion,  shall   hear   such  application,  and   shall   require   such 
proof  as  to  the  necessity  or  advisability  A  such  lease,  and 
if  he  shall  approve  the  same,  he  shall  enter  an  order  on 
the  minutes  of  the  probate  court,  either  in  term  time  or 
vacation,  authorizing  the  guardian  to  make  such  mineral 
lease,  which  order  shall  set  out  the  terms  upon  which  it 
shall  be  made;  provided,  that  in  the  case  of  such  leases 
executed  by  guardians  of   minors,  no  lease   shall   extend 
beyond  the  time  that  the  ward  shall  become  twenty-one 
years  of  age,  unless  at  that  time  the  lessee  shall  have  dis- 
covered such  minerals  as  are  specihed  in  the  lease,  or  any 
of    such   minerals,   upon   the   premises    described    in    such 
lease,  in  which  event  the  same  shall  remain  in  full  force 
so  long  as  such  minerals  or  any  or  either  of  them  shall  be 
produced   in      paying  quantities,   provided   that   the   mar- 
riage of  a  female  ward  shall  not  terminate  any  lease  made 
hereunder   until   such   ward   actually   reaches   the   age    of 
twenty-one  years. 


154  Oil  and  Gas  Laws 

Before  such  application  shall  be  heard  by  the  county 
judge,  notice  of  such  application  shall  be  given  by  the  guar- 
dian for  one  week  prior  to  the  time  such  application  shall 
be  heard  by  publishing  same  in  some  newspaper  of  the 
county  where  said  guardianship  is  pending,  for  one  issue 
of  said  paper,  and  such  notice  shall  state  when  and  where 
such  application  shall  be  heard. 

It  is  further  provided  that  after  notice  and  hearing 
of  said  application  and  the  granting  of  the  same  by  the 
probate  court,  that  said  guardian  shall  be  fully  authorized 
to  make  the  mineral  lease  upon  the  real  estate  of  the 
Tvard,  in  accordance  with  the  judgment  of  the  county  court 
acting  upon  the  same. 

Section  3.  Chapter  44,  General  Laws  of  the  Thirty- 
F'ourth  Legislature,  approved  March  12th,  1915,  is  hereby 
repealed. 

Section  4.  Owing  to  the  fact  that  there  is  no  ade- 
quate law  in  effect  authorizing  the  execution  of  mineral 
leases  by  guardians  upon  the  property  of  their  wards,  and 
owing  to  the  further  fact  that  such  laws  as  are  now  in 
force  are  too  restrictive  and  are  retarding  development  of 
property  for  mineral  purposes  to  the  detriment  of  the  es- 
tates of  persons  under  guardianship,  an  emergency  is 
created  and  an  imperative  public  necessity  exists  for  the 
suspension  of  the  constitutional  rule  requiring  bills  to  be 
read  on  three  several  days,  and  that  this  Act  shall  be  in 
force  from  and  after  its  passage,  and  it  is  so  enacted. 

Approved  March  24,  1919. 

Becomes  effective  90  days  after  adjournment. 


Oil  and  Gas  Laws  155 

GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  25L 

AUTHORIZING  LEASE  OR  SALE  OF  GAS  OR 

OTHER  MINERALS  BY  EXECUTORS  OR 

ADMINISTRATORS  UNDER  ORDER  OF 

THE  COUNTY  COURT. 

S.  B.  No.  385.]  Chapter  137. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

That  Chapter  22  of  the  Revised  Statutes  of  the  State 
of  Texas,  effective  on  the  first  day  of  September,  A.  D. 
1911,  be  amended  by  adding  thereto  Articles  3480a  and 
3480b  to  read  as  follows: 

Article  3480a.  Whenever  there  is  real  property  be- 
longing to  the  estate  of  a  deceased  person  that  is  believed 
to  contain  gas,  oil,  other  minerals,  or  metals,  upon  appli- 
cation in  writing  by  the  executor  or  administrator,  or  any 
heir,  devisee  or  legatee  of  the  deceased  interested  in  such 
gas,  oil,  other  minerals  or  metals,  or  any  creditor  of  the 
estate  whose  claim  had  been  allowed  and  approved  or 
established  by  suit,  the  County  Court,  by  an  order  entered 
on  the  Minutes  of  the  Court  either  in  term  time  or  in 
vacation  may  direct  the  lease  of  such  property  for  the 
purpose  of  drilling,  mining,  and  operating  for  such  gas, 
oil,  other  minerals  or  metals ;  or  any  part  thereof.  Such 
order  shall  state  the  minimum  bonus,  if  any,  to  be  received 
by  the  executor  or  administrator  under  such  lease  or  sale, 
the  minimum  royalty  to  be  reserved  to  the  estate  under 
such  lease  or  sale  in  no  event  less  than  }i  royalty  on  oil 
and  such  other  terms  of  such  lease  or  sale  as  the  court 
may  desire  to  embody  in  such  order. 

Before  such  application  shall  be  heard  by  the  County 
Court  notice  of  such  application  shall,  however,  be  given 
by  the  executor  or  administrator  by  publication  of  such 
notice  in  one  issue  of  any  newspaper  published  in  the 
county  where  such  real  property  is  situated,  which  notice 
shall  appear  subsequent  to  filing  of  such  application  and 
not  less  than  ten  days  prior  to  hearing  thereon,  and  which 
notice  shall  describe  such  real  property  with  sufficient 
accuracy  to  identify  same  and  shall  state  the  time  and 
place  of  hearing  on  such  application. 


156  Oil  and  Gas  Laws 

Article  3480b.  The  executor  or  administrator  shall  in 
term  time  or  vacation  report  to  the  County  Court  any 
lease  or  sale  made  by  him  in  accordance  with  the  immedi 
ately  foregoing  article  within  ten  days  of  entry  of  order 
authorizing  such  lease  or  sale  and  shall  embody  in  such 
report,  or  attach  thereto,  a  full  copy  of  the  proposed  con- 
tract of  lease  or  deed  of  conveyance  evidencing  such  sale, 
and  such  lease  or  sale  shall  be  approved  by  the  court,  with 
such  amendments,  if  any,  as  the  court  may  direct,  or  shall 
be  disapproved  by  the  court  at  any  time  within  ten  days 
after  the  filing  of  such  report  either  in  term  time  or 
vacation  by  an  order  of  approval  or  disapproval  entered 
on  the  Minutes  of  said  Court.  If  said  lease  is  approved, 
the  order  of  approval  shall  direct  the  executor  or  admin- 
istrator to  execute  and  deliver  the  lease,  contract  or  deed 
of  conveyance  approved  on  compliance  by  the  other  party 
or  parties  thereto  with  the  terms  thereof ;  provided  that 
no  lease  executed  under  the  provisions  of  this  Chapter 
shall  be  binding  upon  heirs,  legatees,  or  distributees  of  any 
estate,  or  on  purchasers  from  said  estate  unless  actual 
development  has  been  commenced  by  the  time  said  estate 
is  partitioned  and  distributed  and  is  being  and  continues 
to  be  prosecuted  with  reasonable  diligence  thereafter. 

The  fact  that  gas,  oil  and  other  mineral  and  metal 
lands  are  being  rapidly  developed  in  this  State,  that  oil 
and  gas  have  been  discovered  in  large  quantities  in  various 
sections  of  this  State;  that  in  many  instances  there  is 
danger  of  loss  to  estates  of  deceased  persons  through 
operations  on  tracts  adjacent  to  real  property  belonging 
to  estates ;  and  that  there  is  now  no  adequate  law  author- 
izing the  leasing  of  real  property  belonging  to  such  estate 
or  the  sale  of  the  gas,  oil,  other  minerals  and  metals  con- 
tained therein  creates  an  emergency  and  urgent  public 
necessity  for  the  suspension  of  the  Constitutional  rule 
requiring  bills  to  be  read  on  three  several  days  in  each 
House  and  said  rule  is  now  here  suspended  and  this  Act 
shall  take  effect  and  be  in  operation  from  and  after  its 
passage.     Be  it  so  enacted. 

Approved  March  24,  1919. 

Becomes  effective  90  days  after  adjournment. 


Oil  and  Gas  Laws  157 

GENERAL  LAWS,  35TH  LEGISLATURE,  PAGE  28. 

LIENS  FOR  LABORERS  AND  MATERIALMEN  ON 

PROPERTY  OF  OWNERS  AND  LESSEES 

OF  OIL  AND  MINERAL  LANDS 

S.  B.  No.  71.]  Chapter   17. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  Any  person,  corporation,  firm,  association, 
partnership,  materialman,  laborer  or  mechanic,  who  shall, 
under  contract,  express  or  impHed,  with  the  owner  of  any 
land,  mine  or  quarry,  or  the  owner  of  any  gas,  oil  or  min- 
eral leasehold  interest  in  land,  or  the  owner  of  any  gas 
pipe  line  or  oil  pipe  line,  or  owner  of  any  oil  or  gas 
pipe  line  right  of  way,  or  with  the  trustee,  agent  or  re- 
ceiver of  any  such  owner,  perform  labor  or  furnish  ma- 
terial, machinery  or  supplies,  used  in  the  digging,  drilling, 
torpedoing,  operating,  completing,  maintaining  or  repair- 
ing any  such  oil  or  gas  well,  water  well,  mine  or  quarry, 
or  oil  or  gas  pipe  line,  shall  have  a  lien  on  the  whole  of 
such  land  or  leasehold  interest  therein,  or  oil  pipe  line  or 
gas  pipe  line,  including  the  right  of  way  for  same,  or  lease 
for  oil  and  gas  purposes,  the  buildings  and  appurtenances, 
and  upon  the  materials  and  supplies  so  furnished,  and 
upon  said  oil  well,  gas  well,  water  well,  oil  or  gas  pipe 
line,  mine  or  quarry  for  which  same  are  furnished,  and 
upon  all  of  the  other  oil  wells,  gas  wells,  buildings  and 
appurtenances,  including  pipe  line,  leasehold  interest  and 
land  used  in  operating  for  oil,  gas  and  other  minerals, 
upon  such  leasehold  or  land  or  pipe  line  and  the  right  of 
way  therefor,  for  which  said  material  and  supplies  were 
turnished  or  labor  performed.  Provided,  that  if  labor 
supplies,  machinery,  or  material  is  furnished  to  a  lease- 
holder the  lien  hereby  created  shall  not  attach  to  the 
underlying  fee  title  to  the  land. 

Section  2.  Any  person,  corporation,  firm,  association, 
partnership  or  materialman,  who  shall  furnish  such  ma- 
chinery, material  or  supplies  to  a  contractor  or  sub- 
contractor, or  any  person  who  shall  perform  such  labor 
under  a  sub-contract  with  a  contractor,  or  who  as  an 
artisan  or  day  laborer  in   the  employ  of   such   contractor 


158  Oil  and  Gas  I^aws 

or  sub-contractor,  shall  perform  any  such  labor,  shall 
have  a  lien  upon  the  said  land  or  leasehold  interest  there- 
in, or  oil  pipe  line  or  gas  pipe  line,  including  the  right  of 
way  therefor,  or  lease  for  oil  and  gas  purposes,  the 
buildings  and  appurtenances,  and  upon  the  materials  and 
supplies  so  furnished,  and  upon  said  oil  well,  gas  well, 
water  well,  oil  or  gas  pipe  line  and  the  right  ot  way  there- 
for, mine  or  quarry,  for  which  same  are  furnished,  and 
'ipon  all  of  the  other  oil  wells,  buildings  and  appurte- 
nances, leasehold  interest,  oil  or  gas  pipe  line  including 
right  of  way,  or  land  used  in  the  operating  for  oil,  gas  or 
other  minerals  upon  said  leasehold  or  land  for  which  said 
material  and  supplies  were  furnished  and  labor  performed, 
in  the  same  manner  and  to  the  same  extent  as  the  original 
contractor,  for  the  amount  due  him  for  material  furnish- 
ed or  labor  performed. 

Section  3.  The  lien  herein  provided  for  shall  attach 
to  the  machinery,  material,  supplies  and  the  specific  im- 
provements made,  in  preference  to  any  prior  lien  or  en- 
cumbrance or  mortgage  upon  the  land  or  leasehold  interest 
upon  which  the  said  machinery,  material,  supplies  or 
specific  improvements  are  placed  or  located,  provided  how- 
ever, that  any  lien,  encumbrance,  or  mortgage  upon  the 
land  or  leasehold  interest  at  the  time  of  the  inception  of 
the  lien  herein  provided,  for,  shall  not  be  afifected  thereby; 
and  the  holders  of  such  liens  upon  such  land  or  leasehold 
interest  shall  not  be  necessary  parties  in  suits  to  foreclose 
the  liens  hereby  created. 

Section  4.  The  liens  herein  created  shall  be  fixed  and 
secured  and  notice  thereof  shall  be  given  and  such  liens 
shall  attach  and  be  enforced  in  the  same  manner,  and 
materialman's  statement,  or  the  lien  of  any  laborer  herein 
mentioned  shall  be  filed  and  recorded  within  the  same 
time,  and  in  the  same  manner  as  provided  for  in  Chap- 
tei  2,  Title  86,  entitled  "Liens,"  of  the  Revised  Statutes 
of  1911  of  the  State  of  Texas,  relating  to  liens  for  me- 
chanics, contractors,  builders  and  materialmen  as  the  same 
now  exists  or  may  hereafter  be  amended.  Whenever  any 
person  shall  remove  any  such  property  to  a  county  other 
than  the  one   in   which   the  lien  has  been  filed,  the  lien 


Oil  and  Gas  Laws  159 

holder  may  within  90  days  thereafter  file  an  itemized 
inventory  of  the  property  so  removed,  showing  how  much 
there  is  due  and  unpaid  thereon,  with  the  clerk  of  the 
county  to  which  it  has  been  removed,  which  shall  be 
recorded  in  the  materialman's  lien  records  of  such  county, 
and  such  filing  shall  operate  as  notice  of  the  existence  of 
the  lien  and  the  lien  shall  attach  and  extend  to  the  land 
or  leasehold  and  other  premises,  properties  and  appurte- 
nances to  which  said  properties  so  removed  shall  attach, 
of  the  kind  and  character  enumerated  in  Sections  one  and 
two  hereof. 

Section  5.  When  the  lien  herein  provided  for  shall 
have  attached  to  the  property  covered  thereby,  neither  the 
owner  of  the  land  nor  the  owner  of  said  oil,  gas  or  mineral 
leasehold  interest  therein,  nor  the  owner  of  any  gas  pipe  line 
or  oil  pipe  line  nor  the  contractor,  nor  the  sub-contractor, 
nor  the  purchaser,  nor  the  trustee,  receiver  or  agent,  of  any 
such  owner,  lessor,  lessee,  contractor,  sub-contractor  or 
purchaser,  shall  either  sell  or  remove  the  property  subject 
to  said  lien  or  cause  same  to  be  removed  from  the  land  or 
premises  upon  which  they  were  to  be  used,  or  otherwise 
sell  or  dispose  of  the  same,  without  the  written  consent  of 
the  holder  of  the  lein  hereby  created ;  and  in  case  oi  any 
violation  of  the  provision  of  this  article,  the  said  lien 
holder  shall  be  entitled  to  the  possession  of  the  property 
upon  which  said  lien  exists  wherever  found,  and  to  have 
the  same  then  sold  for  the  payment  of  his  debt,  whether 
said  debt  has  become  due  or  not. 

Section  6.  If  any  person  shall  remove  any  property 
the  same  then  sold  for  the  payment  of  his  debt,  whether 
or  any  part  thereof  covered  by  the  lien  hereby  created 
from  the  place  where  it  was  located  when  the  lien  herein 
provided  for  shall  have  been  filed  of  record,  without 
the  written  consent  of  the  owner  and  holder  of  said 
lien,  with  intent  to  defraud  the  person  having  such  lien, 
either  originally  or  by  transfer,  he  shall  be  deemed  guilty 
of  a  misdemeanor,  upon  conviction  thereof,  shall  be  pun- 
ished by  a  fine  of  not  less  than  five  nor  more  than  five 
hundred  dollars. 


160  Oil  and  Gas  L,aws 

Section  7.  The  provisions  of  this  Act  shall  not  be 
construed  to  deprive  or  abridge  materialmen,  artisans,  la- 
borers, or  mechanics  of  any  rights  and  remedies,  now 
given  them  by  law,  and  the  provisions  of  this  Act  shall  be 
cumulative  of  the  present  lien  laws. 

Section  8.  Nothing  in  this  Act  shall  be  construed  to 
fix  a  greater  liability  against  the  owner  of  the  land  or 
leasehold  interest  therein  than  the  price  or  sum  stipulated 
to  be  paid  in  the  contract  under  which  such  material  is 
furnished,  or  labor  performed. 

Section  9.  It  is  hereby  provided  that  if  any  of  the 
provisions  of  this  Act,  shall,  for  any  reason,  he  held  to  be 
invalid  or  unenforcible,  the  remainder  of  this  Act  shall, 
nevertheless,  not  be  affected  hereby,  but  shall  remain  in 
full  force  and  effect. 

Section  10.  There  being  no  law  protecting  laborers 
and  materialmen  for  labor  performed  for  owners  of  lands, 
mines  or  quarries  or  owners  of  leaseholds  for  oil,  gas, 
pipe  lines  or  rights  of  way  for  mining  or  quarrying  pur- 
poses, creates  an  emergency  and  imperative  public  neces- 
sity exists  that  the  constitutional  rule  requiring  bills  to  be 
read  on  three  several  days  be  and  the  same  is  hereby  sus- 
pended and  that  this  Act  take  effect  and  be  in  force  from 
and  after  its  passage,  and  it  is  so  enacted. 

Approved  February  13,  1917. 

Takes  effect  90  days  after  adjournment. 


Oil  and  Gas  Laws  161 

GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  128. 

REQUIRING  QUARTERLY  REPORTS  TO  THE 

COMPTROLLER  BY  INDIVIDUALS,  ETC, 

PRODUCING  OIL,  AND  FIXING  ONE  AND 

ONE-HALF  PER  CENT  TAX  ON 

GROSS  PRODUCTION. 

H.  B.  No.  257.]  Chapter  77. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  That  Article  738o  of  the  Revised  Civil 
Statutes  of  the  State  of  Texas,  of  1911,  be  so  amended  as 
to  hereafter  read  as  follows  : 

Article  7383.  E^ch  and  every  individual,  company, 
corporation  or  association,  whether  incorporated  under  the 
laws  of  this  or  any  other  State  or  territory  or  of  the 
United  States,  or  any  foreign  countny  which  own,  controls, 
manages  or  leases  any  oil  well  within  this  State  shall  make 
quarterly,  on  the  first  days  of  January,  April,  July  and 
October  of  each  year,  a  report  to  the  Comptroller  of  Pub- 
lic Accounts,  under  oath  of  the  individual  or  of  the  presi- 
dent, treasurer  or  superintendent  of  such  company,  cor- 
poration or  association  showing  the  total  amount  of  oil 
produced  during  the  quarter  next  preceding  and  the  aver- 
age market  value  thereof  during  said  quarter.  Said  indi- 
viduals, companies,  corporations  and  associations  at  the 
time  of  making  said  report  shall  pay  to  the  Treasurer  of 
the  State  of  Texas  an  occupation  tax  for  for  the  quarter 
beginning  on  said  date,  equal  to  one  and  one-half  (1%%) 
per  cent  of  the  total  amount  of  oil  produced  in  this  State 
by  said  individuals,  companies,  corporations  or  associa- 
tions respectively,  during  the  quarter  next  preceding  at  the 
average  market  value  thereof,  as  shown  by  said  report. 

Article  7383a.  Each  and  every  individual,  company, 
corporation,  or  association,  mentioned  in  Article  7383,  as 
above  set  forth,  shall  cause  to  be  made,  and  to  be  kept 
and  preserved,  a  full  and  complete  record  of  all  oil  pro- 
duced during  the  time  so  engaged  in  its  production  and 
said  record  shall  be  open  to  the  inspection  of  all  tax 
officers  of  this  State. 


162  Oil  and  Gas  Laws 

Section  2.  The  fact  that  the  oil  producers  of  this 
State  have  the  benefit  of  the  protection  of  the  law  and  are 
paying  an  inadequate  gross  receipts  tax  creates  an  emer- 
gency and  an  imperative  public  necessity,  that  the  consti- 
tutional rule  requiring  bills  to  be  read  on  three  several 
days  be  suspended,  and  the  same  be  and  is  hereby  sus- 
pended, and  this  Act  shall  take  effect  and  be  in  force  from 
and  after  its  passage,  and  it  is  so  enacted. 

Approved  March  17,  1919. 

Became  effective  March  17,  1919. 


Oil  and  Gas  Laws  163 

Conservation  Laws 


GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  285. 
OIL  AND  GAS  CONSERVATION  LAW. 

S.  B.  No.  350.]  Chapter  155. 

An  Act  to  conserve  the  oil  and  gas  resources  of  the 
State  of  Texas. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas : 

Article  1.  Natural  gas  and  crude  oil  or  petroleum 
shall  not  be  produced  in  the  State  of  Texas  in  such  man- 
ner and  under  such  condition  as  to  constitute  waste.  The 
term  "waste"  in  addition  to  its  ordinary  meaning  shall  in- 
clude (a)  escape  of  natural  gas  in  commercial  quantities 
into  the  open  air  from  a  stratum  recognized  as  a  natural 
gas  stratum;  but  this  is  not  intended  to  have  application 
to  gas  pockets  in  high  points  in  strata  recognized  as  oil 
strata;  (b)  drowning  with  water  of  a  gas  stratum  capable 
of  producing  gas  in  commercial  quantities;  (c)  under- 
ground waste;  (d)  the  permitting  of  any  natural  gas  well 
to  wastefully  burn;  (e)  the  wasteful  utilization  of  such 
gas;  (f)  burning  flambeau  lights,  except  when  casing  head 
gas  is  used  in  same ;  provided,  not  more  than  four  may  be 
used  in  or  near  the  derrick  of  a  drilling  well,  and  (g)  the 
burning  of  gas  for  illuminating  purposes  between  8 
o'clock  a.  m.  and  5  o'clock  p.  m.,  unless  the  use  is  regulat- 
ed by  meter. 

Article  2.  Whenever  natural  gas  in  such  quantity  or 
quantities,  in  a  gas  bearing  stratum  known  to  contain 
natural  gas  in  such  quantities,  is  encountered  in  any  well 
drilled  for  oil  or  gas  in  this  State,  such  gas  shall  be  con- 
fined to  its  original  stratum  until  such  time  as  the  same 
can  be  produced  and  utilized  without  waste  and  all  such 
strata  shall  be  adequately  protected  from  infiltrating  wa- 
ters. All  operators,  contractors,  or  drillers,  pipe  line  com- 
panies, gas  distributing  companies  drilling  for  or  produc- 
ing crude  oil  or  natural  gas  or  piping  oil  or  gas  for  any 
purpose  shall  use  every  possible  precaution  in  accordance 


164  Oil  and  Gas  Laws 

with  the  most  approved  methods  to  stop  and  prevent  waste 
of  oil  and  gas,  or  both,  in  drilling  and  producing  opera- 
tions, storage  or  in  piping  or  distributing  and  shall  not 
waste  fully  utilize  oil  or  gas,  or  allow  same  to  leak  or  es- 
cape from  natural  reservoirs,  wells,  tanks,  containers  or 
pipes. 

Article  3.  It  shall  be  the  duty  of  the  Railroad  Com- 
mission to  make  and  enforce  rules  and  regulations  for  the 
conservation  of  oil  and  gas ;  it  shall  have  authority  to  pre- 
vent the  waste  of  oil  and  gas  in  drilling  and  producing 
operations  and  in  the  storage,  piping  and  distribution 
thereof,  and  to  make  rules  and  regulations  for  that  pur- 
pose; it  shall  be  its  duty  to  require  dry  or  abandoned  wells 
to  be  plugged  in  such  way  as  to  confine  oil,  gas  and  water 
in  the  stratas  in  which  they  are  found  and  to  prevent  them 
from  escaping  into  other  stratas,  and  to  establish  rules 
and  regulations  for  that  purpose.  It  is  empowered  to  es- 
tablish rules  and  regulations  for  the  drilling  of  wells  and 
preserving  a  record  thereof,  and  it  shall  be  its  duty  to 
require  such  wells  to  be  drilled  in  such  manner  as  to 
prevent  injury  to  the  adjoining  property,  and  to  prevent 
oil  and  gas  and  water  from  escaping  from  the  stratas 
in  which  they  are  found  into  other  stratas,  and  to  establish 
rules  and  regulations  therefor;  it  shall  be  its  duty  to 
establish  rules  and  regulations  for  shooting  wells  and  for 
separating  oil  from  gas ;  it  shall  have  authority  to  require 
records  to  be  kept  and  reports  made  by  oil  and  gas  drillers, 
operators  and  pipe  line  companies  and  by  its  inspectors; 
it  is  authorized  to  do  all  things  necessary  for  the  conser- 
vation of  oil  and  gas  whether  here  especially  enumerated 
or  not,  and  to  establish  such  other  rules  and  regulations  as 
will  be  necessary  to  carry  into  effect  this  Act  and  to  con- 
serve the  oil  and  gas  resources  of  the  State. 

Article  4.  It  shall  be  the  duty  of  the  pipe  line  expert 
provided  for  in  Section  11,  Chapter  30,  of  the  Acts  of 
1917,  to  be  the  supervisor  for  the  Railroad  Commission  in 
enforcing  its  rules  and  regulations.  The  Railroad  Com- 
mission may  appoint  such  deputy  supervisors  as  may  be 
necessary.  It  shall  have  the  authority  to  increase  the  sal- 
ary of  the  supervisor  to  a  sum  not  exceeding  $5,000.00  per 


Oil  and  Gas  Laws  165 

annum  and  to  fix  the  salaries  of  the  deputies  at  not  ex- 
^eding  $3,600.00  per  annum,  all  salaries  and  other  ex- 
penses of  the  administration  and  enforcement  of  this  Act 
shall  be  paid  out  of  the  funds  created  in  Chapter  30  of  the 
Acts  of  1917,  and  in  the  manner  therein  provided.  It 
shall  be  the  duty  of  the  supervisor  and  his  deputies  to 
supervise  the  plugging  of  all  abandoned  wells  and  the 
shooting  of  wells  and  to  conform  to  the  rules  and  regu- 
lations of  the  Railroad  Commission,  dealing  with  the  pro- 
duction and  conservation  of  oil  and  gas. 

Article  5.  Owners  or  operators  of  gas  wells  shall, 
before  connecting  with  any  oil  or  gas  pipe  lines,  secure 
from  the  Railroad  Commission  a  certificate  showing  com- 
pliance with  the  oil  and  gas  conservation  laws  of  the 
State  and  conservation  orders  of  the  Railroad  Commis- 
sion. Pipe  line  companies  shall  not  connect  with  oil  or 
gas  wells  until  the  owners  or  operators  thereof  shall  fur- 
nish certificate  from  the  Railroad  Commission  that  the 
conservation  laws  of  the  State  have  been  complied  with, 
provided  this  Act  shall  not  prevent  a  temporary  connection 
with  any  well  or  wells  in  order  to  take  care  of  production 
and  prevent  waste  until  opportunity  shall  have  been  given 
the  owner  or  operator  of  said  well  to  secure  certificate 
showing  compliance  with  the  conservation  laws  of  the 
State. 

Article  6.  It  is  hereby  made  the  duty  of  all  owners 
or  operators  of  oil  and  gas  wells  to  keep  booKs  showing 
the  amount  of  oil  and  gas  produced  and  disposed  of,  with 
the  price  for  which  the  same  was  sold,  together  with  the 
receipts  from  the  sale  or  transfer  of  leases  or  other  prop- 
erty and  the  disbursements  made  in  connection  with  or  for 
the  benefit  of  such  business  which  books  shall  be  kept  open 
for  the  inspection  of  the  Railroad  Commission  or  any 
accredited  representative  thereof ;  and  of  any  stockholder 
or  shareholder  in  said  business  and  any  owner  or  operator 
refusing  to  comply  with  the  provisions  of  this  article  shall 
be  subject  to  the  penalties  imposed  by  this  Act. 

Article  7.  In  addition  to  any  penalty  that  may  be 
imposed  by  the  Railroad  Commission  for  contempt,  any 
firm,  person,  corporation  or  any  officer,  agent  or  employee 


166  Oil  and  Gas  Laws 

thereof,  directly  or  indirectly  violating  the  provisions  of 
this  Act  or  the  orders  or  regulations  of  the  Railroad  Q)ni- 
mission  made  in  pursuance  thereof,  shall  be  subject  to  a 
penalty  of  not  more  than  five  thousand  ($5,000.00)  dol- 
lars, to  be  recovered  in  any  court  of  competent  jurisdic- 
tion, such  suit  to  be  brought  in  the  name  of  the  State 
of  Texas,  and  to  be  instituted  and  conducted  by  any 
county  or  district  attorney,  on  the  direction  of  the  Rail- 
road Commission.  Each  day  that  such  violation  contin- 
ues shall  be  considered  a  separate  offense. 

Article  8.  This  Act  shall  be  cumulative  of  all  the 
laws  of  this  State  which  are  not  in  direct  conflict  here- 
with, regulating  the  conservation  of  oil  and  gas,  but  it 
shall  repeal  all  laws  or  parts  of  law  in  conflict  with  its 
provisions. 

Article  9.  If  any  of  the  provisions  of  this  Act  shall 
be  held  unconstitutional,  or  for  any  other  reason  shall  be 
held  void,  such  holdings  shall  not  have  the  effect  to 
nullify  the  remaining  parts  of  this  Act,  but  the  parts  not 
so  held  to  be  void  shall  nevertheless  remain  in  full  force 
and  effect. 

Article  10.  Whereas,  there  is  now  no  law  in  this 
State  regulating  corporations,  persons  or  associations  of 
persons  engaged  in  the  production  of  oil  and  gas,  and 
adequately  conserving  these  resources,  and  whereas  great 
waste  of  gas  is  now  daily  occuring  in  the  oil  fields  of 
Texas;  now,  therefore,  it  is  hereby  declared  that  an 
emergency  exists  creating  an  imperative  public  necessity 
for  the  suspension  of  the  constitutional  rule  requiring 
bills  to  be  read  on  three  several  days,  and  the  same  is 
hereby  suspended  and  this  law  shall  take  effect  and  be 
in  force  from  and  after  its  passage,  and  it  is  so  enacted. 

Approved  March  31,  1919. 

Took  effect  June  18,  1919. 


Oil  and  Gas  Laws  167 

GENERAL  LAWS  OF  SECOND  CALLED  SESSION, 
THIRTY-SIXTH  LEGISLATURE,  PAGE  79,  RE- 
QUIRING  OWNERS   AND   OPERATORS   OF 
OIL  AND  GAS  WELLS  TO  KEEP  ACCUR- 
ATE RECORDS  OF  OIL  AND  GAS  PRO- 
DUCED, AND  KEEP  BOOKS  OPEN  TO 
INSPECTION  BY  THE  RAILROAD 
COMMISSION. 
"Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

"Section  L  It  is  hereby  made  the  duty  of  all  owners 
and  operators  of  oil  and  gas  wells  to  keep  books,  show- 
ing accurately  the  amount  of  stock  sold  and  unsold  and 
amount  of  promotion  money  paid,  amount  of  oil  and 
gas  produced  and  disposed  of,  with  the  price  for  which 
the  same  was  sold,  together  with  the  receipts  from  the 
sale  or  transfer  of  leases  or  other  property,  and  the  dis- 
bursements made  in  connection  with  or  for  the  benefit 
of  such  business;  which  books  shall  be  kept  open  for  the 
inspection  of  the  Railroad  Commission  or  any  accredited 
representative  thereof,  and  of  any  stockholder  or  share- 
holder or  royalty  owner  in  said  business,  and  shall  report 
such  information  to  the  Railroad  Commission  of  Texas 
for  its  information,  when  required  by  the  Commission  to 
do  so.  Any  person,  firm,  partnership,  joint  stock  associa- 
tion, corporation  or  other  organization,  domestic  or  for- 
eign, operating  wholly  or  partially  within  this  State,  act- 
ing as  principal  or  agent  for  another,  for  the  purpose  of 
drilling,  owning  or  operating  any  oil  or  gas  well,  or  own- 
ing or  controlling  leases  of  oil  and  mineral  rights,  or  the 
transportation  of  oil  or  gas  by  pipe  line,  shall  immediate- 
ly file  with  the  Railroad  Commission  of  Texas,  at  Austin, 
the  name  of  the  company  or  organization,  giving  the  name 
and  postoffice  address  of  the  organization,  the  plan  under 
which  it  was  organized,  and  the  names  and  postoffice  ad- 
dresses of  the  trustee  or  trustees  thereof,  and  the  names  and 
postoffice  addresses  of  the  officers  and  directors.  Any 
person,  firm,  joint  stock  association,  corporation  or  other 
organization,  or  the  agent  thereof,  refusing  to  comply  with 
any  of  the  provisions  of  this  section,  shall  be  subject  to  all 


168  Oil  and  Gas  Laws 

the  fines  and  penalties  imposed  by  Article  7,  Chapter  155, 
Acts  of  the  Regular  Session  of  the  Thirty-sixth  Legisla- 
ture, approved  March  31,  1919. 

■'Section  2.  All  salaries  and  expenses  necessary  to 
enforce  the  provisions  of  Chapter  155,  Acts  of  the  Reg- 
ular Session  of  the  Thirty-sixth  Legislature,  to  conserve 
the  oil  and  gas  resources  of  the  State,  shall  be  paid  out 
of  the  fund  created  by  Section  11,  Chapter  30,  Acts  of 
the  Regular  Session  of  the  Thirty-fifth  Legislature. 

"Section  3.  This  act  shall  be  cumulative  of  all  other 
laws  for  the  conservation  of  oil  and  gas  and  the  control 
of  pipe   lines. 

''Section  4.  Whereas,  the  present  law  does  not  re- 
quire drillers,  owners,  operators  and  other  persons  drill- 
ing or  owning  oil  or  gas  wells  to  furnish  the  Railroad 
Commission  the  information  required  in  Section  1,  and 
does  not  require  organizations  drilling,  owning,  or  oper- 
ating oil  or  gas  wells  to  furnish  the  Commission  with 
complete  information  concerning  said  organization,  creates 
an  emergency  and  an  imperative  public  necessity  requir- 
ing the  suspension  of  the  constitutional  rule  requiring 
bills  to  be  read  on  three  several  days,  and  said  rule  is 
hereby  suspended,  and  this  law  shall  take  efifect  and  be 
in  force  from  and  after  its  passage,  and  it  is  so  enacted." 

Approved  July  25,  1919. 

Took   efifect  July  25,    1919. 


Oil  and  Gas  Laws  169 

CONSERVATION  RULES  AND 
REGULATIONS. 

OFFICE  OF 

RAILROAD  COMMISSION  OF  TEXAS. 

OIL  AND  GAS  CIRCULAR  NO.  IL 

Austin,  Texas,  July  26,   1919. 

In  pursuance  of  the  provisions  and  requirements  of 
Chapter  155,  Acts  of  the  Regular  Session  of  the  Thirty- 
sixth  Legislature  of  Texas,  approved  March  31,  1919, 
being  "An  Act  to  Conserve  the  Oil  and  Gas  Resources 
of  the  State  of  Texas,  to  Define  'Waste,'  "  etc.,  and  in 
pursuance  further  of  notice  given  by  Oil  and  Gas  Cir- 
cular No.  8,  issued  June  18,  1919,  and  of  public  hearing 
held  by  this  Commission  on  July  8,  1919,  it  is  hereby 
ordered  by  the  Railroad  Commission  of  Texas  that  Oil 
and  Gas  Circular  No.  7,  issued  June  18,  1919,  be  and  the 
same  is  hereby  canceled,  and  that  the  following  Rules 
and  Regulations  be  and  the  same  are  hereby  adopted  and 
prescribed  by  said  Commission  for  observance,  on  and 
after  July  26,  1919,  until  changed  by  said  Commission, 
by  all  owners,  operators,  contractors,  drillers,  pipe  line 
companies,  and  gas  distributing  companies  drilling  for  or 
producing  crude  petroleum  or  natural  gas,  or  piping  oil 
or  gas  for  any  purpose,  in  this  State. 

Rule  1.  Waste  Prohibited. — Natural  gas  and  crude 
oil  or  petroleum  shall  not  be  produced  in  the  State  of 
Texas  in  such  manner  and  under  such  conditions  as  to 
constitute  waste. 

Rule  2.  "Waste"  Defined. — The  term  "waste"  as 
above  used,  in  addition  to  its  ordinary  meaning,  shall  in- 
clude : 

(a)  Escape  of  natural  gas  in  commercial  quantities 
into  the  open  air  from  a  stratum  recognized  as  a  natural 
gas  stratum ;  but  this  is  not  intended  to  have  application 
tc  gas  pockets  in  high  points  in  strata  recognized  as  oil 
strata ; 

(b)  Drowning  with  water  of  a  gas  stratum  capable 
of  producing  gas  in  commercial  quantities ; 

(c)  Underground  waste; 


170  Oil  and  Gas  Laws 

(d)  The  permitting  of  any  natural  gas  to  wastefuUy 
burn ; 

(e)  The  wasteful  utilization  of  such  gas ; 

(f)  Burning  flambeau  lights  except  when  casing  head 
gas  is  used  in  same ;  provided,  not  more  than  four  may 
be  used  in  or  near  the  derrick  of  a  drilling  well,  and 

(g)  The  burning  of  gas  for  illuminating  purposes 
between  eight  o'clock  a.  m.  and  five  o'clock  p.  m.,  unless 
the  use  is  regulated  by  meter. 

Rule  3.  Gas  to  Be  Confined — Strata  to  Be  Protected. 
— Whenever  natural  gas  in  commercial  quantities,  in  a 
well  defined  gas-bearing  stratum  known  to  contain  natural 
gas  in  such  quantities,  is  encountered  in  any  well  drilled 
for  oil  or  gas  in  this  State,  such  gas  shall  be  confined 
to  its  original  stratum  until  such  time  as  the  same  can  be 
produced  and  utilized  without  waste,  and  all  such  strata 
shall  be  adequately  protected  from  infiltrating  waters. 
This  rule  shall  not  apply  to  the  Gulf  Coast  oil  fields  of 
Texas ;  nor  shall  this  rule,  as  to  the  fields  in  which  it 
applies,  prevent  the  drilling  deeper  in  search  for  oil  in 
any  well,  if  such  drilling  shall  be  prosecuted  with  dili- 
gence and  if  said  gas  be  confined  in  its  stratum  and 
protected  as  aforesaid  upon  completion  of  such  well;  but 
at  any  time  after  the  expiration  of  seven  (7)  days  from 
the  penetration  of  such  gas-bearing  stratum,  even  though 
such  drilling  deeper  is  being  prosecuted  with  diligence, 
the  Railroad  Commission,  or  its  Conservation  Agent  or 
any  deputy  of  the  latter,  may  require  such  gas-bearing 
stratum  to  be  cased  oflF  and  so  protected,  if  in  their 
judgment  it  shall  be  reasonably  necessary  and  proper  to 
do  so. 

Rule  4.  Approved  Methods  of  Preventing  Waste  to 
Be  Used. — All  operators,  contractors  or  drillers,  pipe  line 
companies,  or  gas  distributing  companies,  drilling  for  or 
producing  crude  oil  or  natural  gas,  or  piping  oil  or  gas 
for  any  purpose,  shall  use  every  possible  precaution  in 
accordance  with  the  most  approved  methods  to  stop  and 
prevent   waste   of   oil   and   gas,  or  both,   in   drilling  and 


Oil  and  Gas  Laws  171 

producing  operations,  storage,  or  in  piping  or  distribut- 
ing, and  shall  not  wastefully  utilize  oil  or  gas,  or  allow 
same  to  leak  or  escape  from  natural  reservoirs,  wells, 
tanks,  containers  or  pipes. 

Rule  5.  "Commercial  Quantities''  Defined. — Any  gas 
stratum  showing  a  well  defined  gas  sand  and  producing 
gas  shall  be  considered  capable  of  producing  gas  in  com- 
mercial quantities,  and  any  gas  coming  from  such  a 
stratum  or  sand  shall  be  considered  a  commercial  quan- 
tity, and  such  stratum  or  sand  shall  be  protected  the 
same  as  under  Rule  3. 

Rule  6.  Gas  to  Be  taken  Ratably. — Whenever  the 
full  production  from  any  common  source  of  supply  of 
natural  gas  in  this  State  is  in  excess  of  the  market  de- 
mands, then  any  person,  firm  or  corporation  having  the 
right  to  drill  into  and  produce  gas  from  any  such  com- 
mon source  of  supply  may  take  therefrom  only  such 
proportion  of  the  natural  gas  that  may  be  marketed  with- 
out waste,  as  the  natural  flow  of  the  well  or  wells  owned 
or  controlled  by  any  such  person,  firm  or  corporation 
bears  to  the  total  natural  flow  of  such  common  source  of 
supply,  having  due  regard  to  the  acreage  drained  by  each 
well,  so  as  to  prevent  any  such  person,  firm  or  corpora- 
tion securing  any  un-^air  proportion  of  the  gas  therefrom; 
provided,  that  the  Railroad  Commission  of  Texas  may, 
by  proper  order,  permit  the  taking  of  a  greater  amount 
whenever  it  shall  deem  such  taking  reasonable  or  equita- 
ble. 

Rule  7.  Commission  Will  Regulate  the  Taking  of 
Natural  Gas. — The  Railroad  Commission  of  Texas  will, 
as  occasion  arises,  prescribe  rules  and  regulations  for  the 
determination  of  the  natural  flow  of  any  well  or  wells  in 
this  State,  and  will  regulate  the  taking  of  natural  gas 
Irom  any  and  all  common  sources  of  supply  within  the 
State  so  as  to  prevent  waste,  protect  the  interests  of  the 
public  and  of  all  those  having  a  right  to  produce  there- 
from; and  to  prevent  unreasonable  discrimination  in 
favor  of  one  common  source  of  supply  as  against  an- 
other. 


172  Oil  and  Gas  Laws 

Rule  8.  Gas  to  Be  Metered. — All  gas  produced  from 
the  deposits  of  this  State  when  sold  shall  be  measured 
by  meter,  and  each  gas  well,  or  the  entire  property  on 
which  it  is  located,  shall  be  equipped  with  such  meter. 

Rule  9.  Notice  of  Intention  to  Drill,  Deepen  or  Plug. 
— Notice  shall  be  given  to  the  Railroad  Commission  of 
Texas  or  its  agents  of  the  intention  to  drill,  aeepen  or 
plug  any  well  or  wells  and  of  the  exact  location  of  each 
and  every  such  well.  In  case  of  drilling,  notice  shall  be 
given  at  least  five  (5)  days  prior  to  the  commencement 
of   drilling  operations. 

Notice  of  intention  to  plug  must  be  given  at  least 
twenty-four  (24)  hours  prior  to  beginning  of  plugging, 
and  must  be  accompanied  by  a  complete  log  of  the  well, 
on  forms  prescribed  by  the  Railroad  Commission  of 
Texas. 

Blanks  for  notification  and  reports  can  be  obtained  by 
application  to  the  Railroad  Commission  of  Texas  or  its 
conservation  agent  in  the  field. 

Rule  10.  Plugging  Dry  and  Abandoned  Wells. —  (a) 
All  abandoned  or  dry  wells  shall  immediately  be  plugged 
according  to  the  following  rules : 

(b)  Manner  of  Plugging. — All  dry  or  abandoned 
wells  must  be  plugged  by  confining  all  oil,  gas  or  water 
in  the  strata  in  which  they  occur,  by  the  use  of  mud-laden 
fluid,  or  by  some  other  method  approved  by  the  Commis- 
sion. In  case  of  cable-drilling,  cement  and  plugs  may  be 
used. 

(c)  Notice  of  Intention  to  Plug. — Before  plugging 
dry  and  abandoned  wells,  notice  shall  be  given  to  the 
Railroad  Commission  of  Texas  or  its  conservation  agent 
in  the  field,  and  to  all  available  adjoining  lease  and  prop- 
erty owners,  and  representatives  of  such  lease  and  prop- 
erty owners  may,  in  addition  to  the  oil  and  gas  conser- 
vation agent  of  the  Commission,  be  present  to  witness 
the  plugging  of  these  wells  if  they  so  desire,  but  plugging 
shall  not  be  delayed  because  of  failure  or  inability  to 
deliver  notices  to  adjoining  lease  and  property  owners. 


Oil  and  Gas  Laws  173 

Rule  11.  Log  and  Plugging  Record  to  Be  Filed  with 
Commission. — The  owner  or  operator  shall,  upon  the 
completion  of  any  well,  file  with  the  Railroad  Commis- 
sion of  Texas  a  complete  record  or  log  of  the  same,  duly 
signed  and  sworn  to,  upon  blanks  to  be  furnished  by  the 
Commission  upon  application ;  and  upon  plugging  any 
well  for  any  cause  whatever,  a  complete  record  of  the 
plugging  thereof  shall  be  made  out  and  duly  verified  on 
blanks  to  be  furnished  by  the  Commission. 

Rule  12.  Proper  Anchorage  to  Be  Laid. — Before  any 
well  is  begun  in  any  field  where  it  is  not  known  that 
high  pressure  does  not  exist,  proper  anchorage  shall  be 
laid  so  that  the  control  casing-head  may  be  used  on  the 
inner  string  of  casing  at  all  times,  and  this  type  of  cas- 
ing-head shall  be  kept  in  constant  use  unless  it  is  known 
from  previous  experience  and  operations  on  wells  adja- 
cent to  the  one  being  drilled  that  high  pressure  does  not 
exist  or  will  not  be  encountered  therein. 

Rule  13.  Equipment  for  Conserving  Natural  Gas 
Shall  Be  Provided  Before  "Drilling-in." — In  all  proven  or 
well-defined  gas  fields,  or  where  it  can  reasonably  be  ex- 
pected that  gas  in  commercial  quantities  will  be  encoun- 
tered, adequate  prepaartions  shall  be  made  for  the  con- 
servation of  gas  before     "drilling-in"  any  well. 

Rule  14.  Separate  Slush  Pit  to  Be  Provided. — Before 
commencing  to  drill  a  well,  a  separate  slush  pit  or  slump 
hole  shall  be  constructed  by  the  owner,  operator  or  con- 
tractor for  the  reception  of  all  pumpings  from  clay  or 
soft  shale  formations  in  order  to  have  the  same  on  hand 
for  the  making  of  mud-laden  fluid. 

Note. — In  order  to  avoid  freezing  casing,  operators 
are  cautioned  not  to  allow  sand  or  lime  to  be  mixed  with 
clay  or  soft  shale  pumpings. 

Rule  15.  Wells  Not  to  Be  Permitted  to  Produce  Oil 
and  Gas  from  Different  Strata. — No  wells  shall  be  per- 
mitted to  produce  both  oil  and  gas  from  different  strata 
unless  it  be  in  such  manner  as  to  prevent  waste  of  any 
character  to  either  product  and  in  accordance  with  Rule  3. 

Rule  16.     Strata  to  Be  Sealed  Off.— No  well  shall  be 


174  Oil  and  Gas  Laws 

drilled  through  or  below  any  oil,  gas  or  water  stratum 
without  sealing  off  such  stratum  or  the  contents  thereof, 
after  passing  through  the  sand,  either  by  the  mud-laden 
fluid  process  or  by  casing  and  packers,  regardless  of 
volume  or  thickness  of  sand ;  provided  this  rule  shall  be 
subject  to  Rule  3  as  that  rules  relates  to  natural  gas. 

Rule  17.  Density  of  Mud-Fluid  Where  Well  Con- 
taining Water  is  Drilled  Into  Oil  or  Gas-Producing 
Strata. — No  operator  shall  drill  a  well  into  a  known  oil 
or  gas-producing  sand  with  water  from  a  higher  forma- 
tion in  the  hole,  or  with  a  sufficient  head  of  water  intro- 
duced into  the  hole  to  prevent  gas  blowing  to  the  surface. 
The  well  shall  either  be  allowed  to  blow  until  the  same 
has  been  drilled-in  or  it  shall  be  drilled  in  under  a  head  of 
fluid  consisting,  when  necessary,  of  not  less  than  25  per 
cent  mud;  but  in  no  case  shall  gas  be  allowed  to  blow  for 
a  longer  period  than  three  (3)  days  after  completion  of 
well.  Mud-laden  fluid  used  for  protecting  oil  and  gas- 
bearing  sands  in  upper  formations  while  oil  or  gas  is  be- 
ing produced  from  deeper  formations  should  have  a 
density  of  not  less  than  25  per  cent  mud  and  should  con- 
tain not  less  than  28  per  cent  mud. 

Rule  18.  Mud-laden  Fluid  to  Be  Applied  in  Pulling 
or  Redeeming  Casing. — No  outside  casing  from  any  oil 
or  gas  well  in  an  unexhausted  oil  or  gas  field,  shall  be 
pulled  without  first  flooding  the  well  with  mud-laden 
fluid  behind  the  inside  string  of  casing,  after  unseating  the 
casing,  and  as  casing  is  withdrawn,  well  shall  be  kept  full 
to  top  with  said  mud-laden  fluid  and  same  shall  be  left  in 
the  hole ;  and  said  mudladen  fluid  shall  be  so  applied  as  to 
effectively  seal  off  all  fresh  or  salt  water  strata,  and  all  oil 
or  gas  strata  not  being  utilized. 

Rule  19.  Mud-laden  Fluid— When  to  Be  Applied  to 
Completed  Wells. — When  necessary  (or  in  any  event 
when  ordered  by  the  Railroad  Commission  of  Texas)  to 
seal  off  any  oil,  gas  or  water  sand,  casing  shall  be  seated 
in  mud-laden  fluid;  and  concerning  wells  already  drilled, 
the  operator  shall,  upon  the  order  of  the  Railroad  Com- 
mission of  Texas,  raise  any  string  or  strings  of  casings 


Oil  and  Gas  Laws  175 

and  re-seat  them  in  mud-laden  fluid  when  it  is  thought 
advisable  to  do  so  in  order  to  avoid  existing  underground 
waste,  pollution  or  infiltration. 

Rule  20.  Fresh  Water  to  Be  Protected. — Fresh  wa- 
ter, whether  above  or  below  the  surface,  shall  be  pro- 
tected from  pollution,  whether  in  drilling  or  plugging. 

Rule  21.  Separating  Devices. — Where  oil  and  gas  are 
found  in  the  same  stratum  and  it  is  impossible  to  separ- 
ate the  one  from  the  other,  the  operator  shall,  upon  being 
so  ordered  by  the  Railroad  Commission  of  Texas,  install 
a  separating  device  of  approved  type,  which  shall  be  kept 
in  place  and  used  as  long  as  necessity  therefor  exists,  and 
after  being  installed,  such  device  shall  not  be  removed, 
nor  the  use  thereof  discontinued,  without  the  consent  of 
the  Railroad  Commission  of  Texas. 

Rule  22.  Gas  Wells  Not  to  Produce  from  Different 
Sands  at  the  Same  Time  Through  the  Same  String  of 
Casing. — No  gas  well  shall  be  permitted  to  produce  gas 
from  different  levels,  sands  or  strata  at  the  same  time 
through  the  same  string  of  casing,  and  when  gas  upon  be- 
ing found  is  not  needed  for  immediate  use,  the  same 
shall  be  confined  in  its  original  stratum  until  such  time 
as  the  same  can  be  produced  and  utilized  without  waste, 
and  in  confining  gas  to  its  original  place  the  mud-laden 
fluid  process  shall  be  used  unless  the  character  of  the 
formation  involved  is  sufficiently  ascertained  and  under- 
stood to  know  that  the  casing  and  packer  method  with 
Braden-head  attachment  can  be  safely  applied  and  com- 
petently used,  and  in  the  use  of  the  casing,  packing  and 
Bradenhead  method,  separate  strings  of  casing  shall  be 
run  to  each  sand. 

Rule  23.  Shooting  of  Wells. —  (a)  All  shooting  of 
wells  shall  be  under  rules  and  regulations  of  the  Railroad 
Commission  of  Texas. 

(b)  Wells  Not  to  Be  Shot  Into  Salt  Water.— No 
well  shall  be  so  shot  as  to  let  in  salt  water  or  other 
foreign  substance  injurious  to  the  oil  or  gas  sand. 

(c)  Reports  to  Be  Made  to  the  Railroad  Commis- 
sion of   Texas. — Reports   shall  be  made   to  the  Railroad 


176  Oil  and  Gas  Laws 

Commission  of  Texas  on  all  wells  shot,  showing  the  con- 
dition of  the  well  before  and  after  shooting,  including  the 
size  of  the  shot,  sand  or  sands  shot,  production  before 
and  after  shooting,  per  cent  of  water  in  well  before  and 
after    shooting. 

(d)  Damaged  Wells  to  Be  Abandoned. — In  case  irre- 
parable injury  is  done  to  the  wells,  or  to  the  oil  or  gas 
sands  by  shooting,  the  well  shall  immediately  be  aban- 
doned and  plugged  as  provided  by  Rule  No.   10. 

(e)  Notice  of  Intention  to  Shoot. — Notice  of  inten- 
tion to  shoot  must  be  given  the  Railroad  Commission  of 
Texas,  on  blank  form  prescribed  by  it,  at  least  two  (2) 
days  prior  to  shooting. 

Rule  24.  Gauge  to  Be  Taken — Reports  to  Commis- 
sion.— All  oil  and  gas  operators  shall,  between  the  first 
and  tenth  of  each  month,  take  the  rock  pressure  of  all 
wells  producing  natural  gas  which  is  being  marketed,  and 
shall  forthwith  report  to  the  Railroad  Commission  of 
Texas,  on  gauge  blanks  furnished  by  the  Commission. 

Rule  25. — Production  of  Gas  to  Be  Restrained  to  Fif- 
t>  Per  Cent  of  Potential  Capacity. — When  the  gas  from 
any  well  is  being  used,  the  flow  or  production  thereof 
shall  be  restrained  to  fifty  (50)  per  cent  of  the  potential 
capacity  of  the  same;  that  is  to  say,  in  any  day  (24 
hours)  the  well  shall  not  be  permitted  to  flow  or  produce 
more  than  one-half  of  the  potential  capacity  thereof  as 
shown  by  the  last  monthly  gauge ;  provided,  that  this  rule 
shall  not  apply  to  casing-head  gas,  and  provided  further 
that,  in  cases  of  emergency,  greater  production  may  be 
used  after  special  authority  therefor  has  been  secured 
from  the  Railroad  Commission  of  Texas. 

Rule  26.  Notification  of  Fires  and  Breaks  or  Leaks. 
— All  drillers,  operators,  pipe  line  companies,  and  indi- 
viduals operating  oil  and  gas  wells  or  pipe  lines  shall  im- 
mediately notify  the  Railroad  Commission  of  Texas  by 
letter  of  all  fires  which  occur  at  oil  or  gas  wells  or  oil 
tanks  owned,  operated,  or  controlled  by  them  or  on  their 
property,  and      shall   immediately  report  all  tanks  struck 


Oil  and  Gas  Laws  177 

by  lightning  and  any  other  fires  which  destroy  crude  oil 
or  natural  gas,  and  shall  immediately  report,  in  the 
manner  heretofore  described,  any  breaks  or  leaks  in  tanks 
or  pipe  lines  from  which  oil  or  gas  is  escaping.  In  all 
reports  of  fires,  breaks,  or  leaks  in  pipes,  or  other  acci- 
dfjits  of  this  nature,  the  location  of  the  well,  tank  or  line 
break  shall  be  given,  showing  location  by  county  and 
survey.  The  reports  provided  for  under  this  rule  shall 
only  be  required  when  the  loss  by  fire,  breaks  or  leaks  or 
other  accident  is  material  and  only  as  regards  losses  con- 
nected with  production  or  transportation  in  this  State 
over  which  the  Railroad  Commission  of  Texas  has  juris- 
diction. 

Rule  27.  Reports  from  Pipe  Line  Companies. — The 
Railroad  Commission  of  Texas  will,  from  time  to  time, 
require  oil  and  gas  pipe  line  companies  to  make  reports 
to  the  Commission  showing  wells  connected  with  their 
lines  during  any  month,  the  amount  of  production  taken 
therefrom,  names  of  parties  from  whom  oil  and  gas  are 
purchased,  the  amount  of  oil  or  gas  purchased  therefrom; 
and  all  oil  and  gas  pipe  line  companies  shall,  in  addition 
to  the  other  reports  required  by  the  rules  of  the  Com- 
mission, furnish  to  the  Commission  duplicates  of  all  re- 
ports made  to  the  State  Comptroller  under  the  oil  and 
gas  gross  production  tax  laws.  The  Commission  will,  in 
case  of  over-production  or  for  any  other  reason  which  it 
deems  urgent,  require  oil  or  gas  pipe  line  companies  to 
furnish  daily  reports  of  the  amount  of  oil  or  gas  pur- 
chased or  taken   from  different  wells  or  parties. 

Rule  28.  Pipe  Line  Companies — Connection  with  Oil 
or  Gas  Wells. — Pipe  line  companies  shall  not  connect 
with  oil  or  gas  wells  until  the  owners  or  operators  there- 
of shall  furnish  a  certificate  from  the  Railroad  Com- 
mission of  Texas  that  the  conservation  laws  of  the  State 
have  been  complied  with;  provided,  this  rule  shall  not 
prevent  the  temporary  connection  with  any  wells  or  wells 
in  order  to  take  care  of  production  and  prevent  waste  un- 
til opportunity  shall  have  been  given  the  owner  or  opera- 
tor of  said  well  to  secure  certificate  showing  compliance 
with  the  conservation  laws  of  the  State. 


178  Oil  and  Gas  Laws 

Rule  29.  Certificates — Showing  Compliance  with  Con- 
servation Laws  and  Rules  Prior  to  Connection. — Owners 
or  operators  of  oil  or  gas  wells  shall,  before  connecting 
with  any  oil  or  gas  pipe  line,  secure  from  the  Railroad 
Commission  of  Texas  a  certificate  showing  compliance 
with  the  oil  and  gas  conservation  laws  of  the  State  and 
conservation  orders  of  the  Commission;  provided  that  this 
rule  shall  not  prevent  temporary  connection  with  pipe 
lines  in  order  to  take  care  of  production  until  opportunity 
shall  have  been  given  for  securing  such  certificate ;  pro- 
vided, further,  that  the  owners  or  operators  of  such  wells 
shall,  in  a  known  or  proven  field,  make  application  for 
such  certificate  in  anticipation  of  production. 

Rule  30.  Drilling  Records  to  Be  Kept. — All  opera- 
tors, contractors,  or  drillers  shall  keep  at  each  well,  while 
drilling  same,  accurate  records  of  the  drilling,  redrilling, 
or  deepening  of  all  such  wells,  showing  all  formations 
drilled  through,  casing  used,  and  other  information  in 
connection  with  drilling  and  operation  of  the  property, 
and  any  and  all  of  this  information  shall  be  furnished  to 
the  Railroad  Commission  of  Texas  upon  request,  or  to 
any  conservation  agent  of  the  Commission. 

Rule  31.  Conservation  Agents  to  Have  Access  to  All 
Wells  and  All  Well  Records. — Conservation  agents  of  the 
Railroad  Commission  of  Texas  shall  have  access  to  all 
wells  and  to  all  well  records,  and  all  companies,  con- 
tractors, or  drillers,  shall  permit  any  conservation  agent 
of  the  Commission  to  come  upon  any  lease  or  property 
operated  or  controlled  by  them  and  to  inspect  any  and 
all  wells  and  the  records  of  said  well  or  wells,  and  to 
have  access  at  all  times  to  any  and  all  wells  and  any  and 
all  records  of  said  wells.  Provided,  that  information  so 
obtained  by  conservation  agents  shall  be  considered  of- 
ficial and  condential  information  and  shall  be  reported 
only  to  the  Commission. 

Rule  32.  Books  to  Be  Kept— Reports  to  Be  Made.— 
All  owners  and  operators  of  oil  and  gas  wells  in  this 
State  shall  keep  books  showing  accurately  the  amount  of 
stock  sold  and  unsold  and  amount  of  promotion   money 


Oil  and  Gas  Laws  179 

paid,  amount  of  oil  and  gas  produced  and  disposed  of, 
with  the  price  for  which  the  same  was  sold,  together  with 
the  receipts  from  the  sale  or  transfer  of  leases  or  other 
property,  and  the  disbursements  made  in  connection  with 
or  for  the  benefit  of  such  business;  which  books  shall  be 
kept  open  for  the  inspection  of  the  Railroad  Commission 
of  Texas  or  any  accredited  representative  thereof,  and  of 
any  stockholder  or  shareholder  or  royalty  owner  in  said 
business,  and  shall  report  such  information  to  the  Railroad 
Commission  of  Texas  for  its  information,  when  required 
by  the  Commission  to  do  so.  Any  person,  firm,  partner- 
ship, joint  stock  association,  corporation  or  other  organi- 
zation, domestic  or  foreign,  operating  wholly  or  partially 
within  this  State,  acting  as  principal  or  agent  for  another, 
for  the  purpose  of  drilling,  owning  or  operating  any  oil 
or  gas  well,  or  owning  or  controlling  leases  of  oil  and 
mineral  rights,  or  the  transportation  of  oil  or  gas  by  pipe 
line,  shall  immediately  file  with  the  Railroad  Commission 
of  Texas,  at  Austin,  the  name  of  the  company  or  organi- 
zation, giving  the  name  and  postoffice  address  of  the  or- 
ganization, the  plan  under  which  it  was  organized,  and  the 
names  and  postoffice  addresses  of  the  trustee  or  trustees 
thereof,  and  the  names  and  postoffice  addresses  of  the 
officers  and  directors. 

Rule  33.  Notice  to  Contractors,  Drillers  and  Others 
to  Observe  Rules. — All  contractors  and  drillers  carrying 
on  business  or  doing  work  in  the  oil  or  gas  fields  of  the 
State,  as  well  as  leaseholders,  land  owners  and  operators 
generally,  shall  take  notice  of  and  are  hereby  directed  to 
observe  and  apply  the  foregoing  rules  and  regulations ;  and 
all  contractors,  drillers,  land  owners  and  operators  will  be 
held  responsible  for  infractions  of  said  rules  and  regula- 
tions. 

Rule  34.  Conservation  Agents  —  Co-operation  with 
Federal  Inspectors. — All  conservation  agents  appointed  by 
the  Railroad  Commission  of  Texas  shall  co-operate  with 
and  invite  the  co-operation  of  the  oil  and  gas  inspectors 
of  the  United  States  Bureau  of  Mines  of  the  Department 
of  the  Interior. 


180  Oil  and  Gas  Laws 

Rule  35.  Conservation  Agents — To  Enforce  These 
Rules. — All  conservation  agents  appointed  by  the  Railroad 
Lommission  of  Texas  shall  be  governed  by,  and  are  charg- 
ed with  the  enforcement  of,  the  law  and  these  rules  and 
regulations. 

Rule  36.  No  pipe  line,  whether  a  common  carrier  or 
not,  shall  be  used  to  transport  oil  or  gas  from  any  tract  of 
land  within  the  State,  except  to  another  tract  immediately 
adjoining,  without  a  permit  from  the  Railroad  Commission 
of  Texas.  Application  for  such  permit  shall  be  made  upon 
the  form  prescribed  by  the  Railroad  Commission  of  Texas, 
and  such  permit  shall  be  granted  when  the  Railroad  Com- 
mission of  Texas  is  satisfied,  from  such  application  and 
the  evidence  in  support  thereof,  and  its  own  investigation 
that  the  proposed  line  is,  or  will  be.  so  laid,  equipped,  and 
managed  as  to  reduce  to  a  minimum  the  possibility  of  waste 

Such  permit,  if  granted,  shall  be  valid  for  only  one 
year,  and  shall  be  revocable  at  any  time  after  hearing  had 
on  ten  days'  notice,  if,  in  the  judgment  of  the  Railroad 
Commission,  any  Hne  is  so  unsafe  or  so  improperly  equipped 
or  managed  as  to  be  likely  to  cause  waste;  or,  if,  in  the 
judgment  of  the  Railroad  Commission,  the  owner  or  oper- 
ator of  such  line,  in  the  operation  thereof,  is  violating 
the  Acts  of  the  Thirty-sixth  Legislature,  Chapter  155,  be- 
ing an  Act  to  conserve  the  oil  and  gas  resources  of  the 
State  of  Texas,  or  any  rule  or  regulation  of  the  Railroad 
Commission,  enacted  under  or  in  pursuance  of  said  Act. 

Rule  37.  No  well  for  oil  or  gas  shall  hereafter  be 
commenced  nearer  than  three  hundred  (300)  feet  to  any 
other  completed  or  drilling  well  on  the  same  or  adjoining 
tract  or  farm;  and  no  well  shall  be  drilled  nearer  than 
one  hundred  and  fifty  (150)  feet  to  any  property  line; 
provided,  that  the  Commission,  in  order  to  prevent  waste 
or  to  protect  vested  rights,  will  grant  exceptions  permitting 
drilling  within  shorter  distances  than  as  above  prescribed, 
upon  application  filed  fully  stating  the  facts,  notice  thereof 
having  first  been  given  to  all  adjacent  lessees  affected 
thereby.  Rule  37  shall  not  for  the  present  be  enforced 
within  the  proven  oil  fields  of  the  Gulf  Coast. 


Oil  and  Gas  Laws  181 

Rule  38.  All  maps  or  sketches  of  any  kind  of  any  sep- 
arate lease  or  tract  of  land  filed  with  the  Oil  and  Gas  De- 
partment of  the  Railroad  Commission,  must  be  drawn  on 
a  scale  of  four  hundred  (400)  feet  to  one  inch,  unless 
the  area  involved  is  less  than  two  acres,  when  the  scale 
must  be  forty  (40)  feet  to  one  inch,  or  unless  the  Com- 
mission specially  grants  permission  that  maps  furnished 
may  be  drawn  on  another  scale. 

Rule  39.  (1)  All  permanent  oil  tanks  or  battery  of 
tanks  must  be  surrounded  by  a  dike  or  ditch  of  at  least 
the  capacity  of  the  tank  or  battery  of  tanks. 

(2)  No  flow  tank,  unless  it  is  entirely  buried,  or  other 
oil  tank  of  any  size  shall  hereafter  be  placed  nearer  than 
150  feet  to  any  derrick,  rig,  building,  power  plant  or  boiler 
of  any  description,  except  where  topography  does  not  per- 
mit. 

(3)  No  field  working  tank  having  a  capacity  of  5,000 
barrels  or  more  shall  hereafter  be  built  nearer  than  200  feet 
(measured  from  shell  to  shell)  to  any  other  tank  or  tanks. 

(4)  No  battery  of  field  storage  tanks  shall  hereafter 
be  placed  nearer  than  200  feet  to  any  other  battery. 

(5)  Printed  signs  reading  "Dangerous,  No  Smoking 
Allowed,"  or  similar  words,  shall  be  posted  in  conspicuous 
places  on  each  producing  lease  or  farm. 

(6)  All  lessees'  premises  shall  be  kept  clear  of  high 
grass,  weeds  and  combustible  trash,  vvithin  a  radius  of  100 
feet  around  an  oil  tank,  tanks  or  producing  wells. 

(7)  Open  earthen  storage  for  merchantabe  oil  is  here- 
after prohibited,  except  when  the  Commission  grants  special 
permission  in  order  to  meet  an  unforeseen  emergency. 
Where  such  storage  is  now  in  use,  it  must  be  discontinued 
within  a  reasonable  time. 

(8)  Swabbing  into  open  pits  is  prohibited  except  when 
testing  a  well  or  cleaning  out  and  such  swabbing  shall  not 
continue  for  a  longer  period  than  ten  days,  without  permis- 
sion from  the  Railroad  Commission. 


182  Oil  and  Gas  Laws 

(9)  All  oil  tanks,  where  there  is  a  gas  hazard,  shall  be 
well  covered  and  provided  with  adequate  gas  vents. 

(10)  No  forge  or  open  light  shall  be  placed  inside  the 
derrick  of  a  well  showing  oil  or  gas. 

(11)  Boilers  must  be  equipped  with  steam  Hnes  for 
fighting  fire  and  must  not  be  set  nearer  than  100  feet  to  any 
producing  well. 

(12)  All  oil  and  gas  pipe  lines  laid  upon  or  across  a 
public  road  or  highway  must  be  buried  to  a  reasonably  safe 
depth. 

(13)  Wherever  available  and  practicable  electric  light 
and  power  shall  be  installed  in  congested  drilling  areas,  upon 
order  of  the  Commission. 

Rule  40.  Vacuum  Pumps  Prohibited.  The  use  of 
vacuum  pumps  or  other  devices  for  the  purpose  of  extract- 
ing oil  or  gas,  except  casing  head  gas  where  the  same  is 
utilized,  from  any  well  by  the  vacuum  process,  is  prohibited, 
except  in  depleted  or  practically  depleted  fields. 

This  order  take  effect  and  be  in  force  on  and  after  July 
26,  1919,  until  amended  or  canceled  by  this  Commission. 

Attest : 

Allison  Mayfield,  Chairman. 

Earle  B.  Mayfield. 
Clarence  E.  Gilmore. 

Commissioners. 
E.  B.  McLean,  Secretary. 


Oil  and  Gas  Laws  183 

Pipe  Lines 

GENERAL  LAWS,  35TH  LEGISLATURE,  PAGE  48. 
REGULATING  PIPE  LINES. 

S.    B.   No.   68.]  Chapter  30. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas : 

Section  I.  Every  person,  firm,  corporation,  limited 
partnership,  joint  stock  association  or  association  of  any 
kind  whatever; 

(a)  Owning,  operating  or  managing  any  pipe  line  or 
any  part  of  any  pipe  line  within  the  State  of  Texas  for  the 
transportation  of  crude  petroleum  to  or  for  the  public  for 
hire,  or  engaged  in  the  business  of  transportating  crude 
petroleum  by  pipe  line ;  or 

(b)  Owning,  operating  or  managing  any  pipe  line  or 
any  part  of  any  pipe  line  for  the  transportation  of  crude 
petroleum,  to  or  for  the  public  for  hire,  and  which  said 
pipe  line  is  constructed  or  maintained  upon,  along,  over 
or  under  any  public  road  or  highway,  or  in  favor  of  whom 
the  right  of  eminent  domain  exists;  or 

(c)  Owning,  operating  or  managing  any  pipe  line  or 
any  part  of  any  pipe  line  or  pipe  lines  for  transportation 
to  or  for  the  public,  for  hire,  of  crude  petroleum,  and 
which  said  pipe  line  or  pipe  lines  is  or  may  be  constructed, 
operated  or  maintained  across,  upon,  along,  over  or  under 
the  right  of  way  of  any  railroad,  corporation  or  other 
common  carrier  required  by  law  to  transport  crude  petro- 
leum as  a  common  carrier;  or 

(d)  Owning,  operating  or  managing  or  participating 
in  ownership,  operation  or  management,  tmder  lease,  con- 
tract of  purchase,  agreement  to  buy  or  sell,  or  other  agree- 
ment or  arrangement  of  any  kind  whatsoever,  any  pipe 
line  or  pipe  lines,  or  part  of  any  pipe  line,  for  the  transpor- 
tation from  any  oil  field  or  place  of  production  within  the 


184  Oil  and  Gas  Laws 

State  of  Texas  to  any  distributing,  refining  or  marketing 
center  or  reshipping  point  thereof,  within  this  State,  of 
crude  petroleum  bought  of  others: 

Is  hereby  declared  to  be  a  common  carrier  and  subject 
to  the  provisions  hereof.  But  the  provisions  of  this  Act 
shall  not  apply  to  those  pipe  lines  which  are  limited  in 
their  use  to  the  wells,  stations,  plants  and  refineries  of  the 
owner  and  which  are  not  a  part  of  the  pipe  line  transpor- 
tation system  of  any  common  carrier  as  above  defined;  nor 
shall  such  provisions  apply  to  any  property  of  such  a  com- 
mon carrier  which  is  not  a  part  of  or  necessarily  incident 
to  its  pipe  line  transportation  system. 

Section  2.  It  is  declared  that  the  operation  of  those 
pipe  lines,  to  which  this  Act  applies,  for  the  transporta- 
tion of  crude  petroleum,  in  connection  with  the  purchase 
or  purchase  and  sale  of  such  crude  petroleum,  is  a  busi- 
ness in  the  mode  of  the  conduct  of  which  the  public  is 
interested,  and  as  such  is  subject  to  regulation  by  law ; 
and  accordingly  it  is  provided  that  from  and  after  the 
expiration  of  thirty  (30)  days  from  the  time  this  law 
takes  eflFect  the  business  of  purchasing,  or  of  purchasing 
and  selling  crude  petroleum,  using  in  connection  with  such 
business  a  pipe  line  of  the  class  subject  to  this  Act  to 
transport  the  crude  petroleum  so  bought  or  sold,  shall  not 
be  conducted,  unless  such  pipe  line  so  used  in  connection 
with  such  business  be  a  common  carrier  within  the  pur- 
view of  this  law  and  subject  to  the  jurisdiction  herein 
conferred  upon  the  Railroad  Commission  of  Texas.  It 
shall  be  the  duty  of  the  Attorney  General  to  enforce  this 
provision  by  injunction  or  other  adequate  remedy. 

Section  3.  The  right  to  lay,  maintain  and  operate  pipe 
lines,  together  with  telegraph  and  telephone  lines  incidental 
to  and  designed  for  use  only  in  connection  with  the  opera- 
tion of  such  pipe  lines  along,  across  or  under  any  public 
stream  or  highway  in  this  State,  is  hereby  conferred  upon 
all  persons,  firms,  limited  partnerships,  joint  stock  asso- 
ciations, or  corporations  coming  within  any  of  the  defini- 
tions of  common  carrier  pipe  lines  as  hereinbefore  made. 
Any  person,  firm,  limited  partnership,  joint  stock  associa- 


Oil  and  Gas  Laws  185 

tion,  or  corporation  may  acquire  the  right  to  construct 
pipe  lines  and  such  incidental  telephone  and  telegraph  lines 
along,  across  or  over  any  public  road  or  highway  in  this 
State,  by  filing  with  the  Railroad  Commission  an  accept- 
ance of  the  provisions  of  this  law,  expressly  agreeing  in 
writing  that  in  consideration  of  the  rights  so  acquired  it 
shall  be  and  become  a  common  carrier  pipe  line,  subject 
to  the  duties  and  obligations  conferred  or  imposed  in  this 
Act.  This  right  to  run  along,  across  or  over  any  public 
road  or  highway,  as  before  provided  for,  can  only  be 
exercised  upon  condition  that  the  traffic  thereon  be  not 
interfered  with,  and  that  such  road  or  highway  be  promptly 
restored  to  its  former  condition  of  usefulness,  and  the 
restoration  thereof  to  be  subject  also  to  the  supervision  of 
the  county  commissioners'  court  or  other  proper  local 
authority.  And  provided,  that  in  the  exercise  of  the 
privileges  herein  conferred,  such  pipe  lines  shall  com- 
pensate the  county  or  road  district,  respectively,  for  any 
damage  done  to  such  public  road,  in  the  laying  of  pipe 
lines,  telegraph  or  telephone  lines,  along  or  across  the 
same;  and  nothing  herein  shall  be  construed  to  grant  any 
pipe  line  company  the  right  to  use  any  public  street  or 
alley  of  any  incorporated  city  or  town,  except  by  express 
permission  from  the  city  or  governing  authority  thereof ; 
and  nothing  herein  shall  be  construed  to  permit  any  com- 
pany to  use  any  street  or  alley  of  any  unincorporated 
town,  except  by  express  permission  of  the  commissioners' 
court  of  the  county  in  which  such  town  is  situated. 

Section  4.  The  Railroad  Commission  shall  have  the 
power  to  establish  and  enforce  rates  of  charges  and  regu- 
lations for  gathering,  transporting,  loading  and  delivering 
crude  petroleum  by  such  common  carriers  in  this  State, 
and  for  the  use  of  storage  facilities  necessarily  incident  to 
such  transportation,  and  to  prescribe  and  enforce  rules 
and  regulations  for  the  government  and  control  of  such 
common  carriers  in  respect  to  their  pipe  lines  and  receiv- 
ing, transferring  and  loading  facilities,  and  it  shall  be  its 
duty  to  exercise  such  power  upon  petition  by  any  person 
showing  a  substantial  interest  in  the  subject.  No  order 
establishing  or  prescribing  rates,  rules  and  regulations  shall 


186  Oil  and  Gas  Laws 

be  made  except  after  hearing  and  at  least  ten  days  and  not 
more  than  thirty  days'  notice  to  the  person,  firm,  corpor- 
ation, partnership,  joint  stock  association,  or  association 
owning  or  controlling  and  operating  the  pipe  line  or  pipe 
lines  affected.  In  the  event  any  rate  shall  be  filed  by  any 
pipe  line  and  complaint  against  same  or  petition  to  reduce 
same  shall  be  filed  by  any  shipper,  and  such  complaint  be 
sustained,  in  whole  or  in  part,  all  shippers  who  shall  have 
paid  the  rates  so  filed  by  the  pipe  line  shall  have  the  right 
tc  reparation  or  reimbursement  of  all  excess  in  transpor- 
tation charges  so  paid  over  and  above  the  proper  rate  as 
finally  determined  on  all  shipments  made  after  the  date  of 
the  filing  of  such  complaint. 

Section  5.  Every  common  carrier  as  above  defined 
shall  exchange  crude  petroleum  tonnage  with  each  like 
common  carrier  and  the  commission  shall  have  the  power 
to  require  such  connections  and  facilities  for  the  inter- 
change of  such  tonnage  to  be  made  at  every  locality  reach- 
ed by  both  pipe  lines  whenever  a  necessity  therefor  exists 
and  subject  to  such  rates  and  regulations  as  made  by  the 
commission ;  and  any  such  common  carrier  under  like 
rules  and  regulations  shall  be  required  to  install  and  main- 
tain facilities  for  the  receipt  and  delivery  of  crude  petro- 
leum of  patrons  at  all  points  on  such  pipe  line.  No  car- 
rier shall  be  required  to  receive  or  transport  any  crude 
petroleum  except  such  as  may  be  marketable  under  rules 
and  regulations  to  be  prescribed  by  the  commission,  which 
they  are  hereby  empowered  and  required  to  prescribe. 
The  commission  is  also  empowered  and  required  to  make 
rules  for  the  ascertainment  of  the  amount  of  water  and 
other  foreign  matter  in  oil  tendered  for  transportation, 
and  for  deduction  therefor  and  for  the  amount  of  deduc- 
tion to  be  made  for  temperature,  leakage  and  evaporation. 
It  is  provided,  however,  that  the  recital  herein  of  particu- 
lar powers  on  the  part  of  said  commission  shall  not  be 
construed  to  limit  the  general  powers  conferred  by  this 
Act.  Until  set  aside  or  vacated  by  some  decree  or  order 
of  a  court  of  competent  jurisdiction,  all  orders  of  the 
commission  as  to  any  matter  within  its  jurisdiction  shall 
be  accepted  as  prima  facie  evidence  of  their  validity. 


Oil  and  Gas  Laws  187 

Section  6.  Such  common  carriers  of  crude  petroleum 
shall  make  and  publish  their  tariffs  under  such  rules  and 
regulations  as  may  be  prescribed  by  said  commission,  and 
and  the  commission  shall  require  them  to  make  reports 
and  may  investigate  their  books  and  records  kept  in  con- 
flection  with  such  business.  The  commission  shall  require 
\erified  under  oath,  of  the  total  quantities  of  crude  petro- 
leum owned  by  such  pipe  lines  and  of  that  held  by  them  in 
storage  for  others,  as  also  of  their  unfilled  storage  capa- 
city, provided  no  publicity  shall  be  given  by  the  commission 
to  the  reports  as  to  stock  of  crude  petroleum  on  hand  of 
any  particular  pipe  line ;  but  the  commission  in  its  dis- 
cretion may  make  public  the  aggregate  amounts  held  by 
all  the  pipe  lines  making  such  reports,  and  of  their  aggre- 
gate storage  capacity.  The  commission  shall  have  the 
power  and  authority  to  hear  and  determine  complaints,  to 
require  attendance  of  witnesses,  pay  their  expenses  out  of 
the  fund  herein  created,  and  to  institute  suits  and  sue  out 
such  writs  and  processes  as  may  be  necessary  for  the  en» 
'orcement  of  its  orders. 

Section  7.     No  such  common  carrier  in  its  operations 
\s  such  shall  discriminate  between  or  against  shippers  in 
regard  to  facilities  furnished  or  service  rendered  or  rates 
charged  under  same  or  similar  circumstances  in  the  trans- 
portation of  crude  petroleum;  nor  shall  there  be  any  dis- 
crimination in  the  transf>ortation  of  crude  petroleum  pro- 
duced or  purchased  by  itself  directly  or  indirectlv.     In  this 
connection  the  oipe  line  shall  be  considered  as  a  shioper 
of  the  crude  petroleum  produced  or  purchased  by  itself 
directly   or  indirectly   and   handled   through   its    facilities 
Mo  such  carrier  in  such  operations  shall  directly  or  indi- 
rectly charge,  demand,  collect  or  receive  from  any  one  p 
greater   or   less    compensation    for    any    service    rendered 
than  from  another  for  a  like  and  contemporaneous  service ; 
provided  this  shall  not  limit  the  right  of  the  commission 
tc   prescribe   rates  and   regulations   different    from   or   to 
some  places   from  other   rates  or  regulations    for  trans- 
portations from  or  to  other  places,  as  it  may  determine; 
nor   shall   any   carrier  be   guilty   of   discrimination   when 
obeying  any  order  of  the  commission.     When  there  shall 


188  Oil  and  Gas  Laws 

be  offered  for  transfKJrtation  more  crude  petroleum  than 
of  such  common  carrier  pipe  Hnes  monthly  reports,  duly 
can  be  immediately  transported,  the  same  shall  be  equita- 
bly apportioned.  The  commission  may  make  and  enforce 
general  or  specific  regulations  in  this  regard.  No  such 
common  carrier  shall  at  any  time  be  required  to  receive 
for  shipments  from  any  person,  firm,  corporation  or  asso- 
ciation of  persons,  exceeding  three  thousand  barrels  of 
petroleum  in  any  one  day. 

Section  8.  The  commission,  when  necessary,  shall 
make  and  enforce  rules  and  regulations  either  general  in 
their  nature  or  applicable  to  particular  oil  fields  for  the 
prevention  of  actual  waste  of  oil  or  operations  in  the 
field  dangerous  to  life  or  property. 

Section    9.      Any   common   carrier   as   herein    defined 
who  shall  violate  any  provision  of  this  Act  or  who  shall 
fail   to   perform   any   duty   herein   imposed   or   any   valid 
order  of  the  commission   when  not   stayed  or  suspended 
by  order  of  court,  shall  be  subject  to  a  penalty  of  not  less 
than   one   hundred   dollars   nor   more   than   one  thousand 
dollars  for  each  offense,  such  penalty  to  be  recoverable  at 
suit  of  the  Attorney  General  of  the   State  of   Texas   in 
the  name  of  the  State  and  for  its  use.     Such  penalty  may 
also  be  recovered  by  and  for  the  use  of  any  person,  cor- 
poration   or   association    of    persons    against    whom   there 
shall  have  been  an  unlawful  discrimination  as  herein  de- 
fined; such   suit  to  be  brought  in  the  name  of  and   for 
the  use  of  party  aggrieved  and  may  be  maintained  in  any 
court   of    proper   jurisdiction,    having   due    regard   to   the 
ordinary  statutes  of  venue.     For  the  wilful  violations  of 
the    provisions    herein    forbidding    discrimination    on    the 
part  of  common  carriers,  it  is  hereby  provided  that  the 
owners,  officers,  agents  or  employes  of  such  carriers  who 
may  be  guilty  thereof  shall  be  deemed  guilty  of  a  misde- 
meanor, each  violation  of  such  provisions  shall  be  deemed 
a  separate  offense  and  upon  conviction  thereof  the  party 
violating  same  shall  be  fined  in  a  sum  of  not  less  than 
fifty  dollars  nor  more  than  one  thousand  dollars,  and  may 
be  further  punished  by  confinement  in  the  county  jail  for 
not  less  than  ten  days  nor  more  than  six  months. 


Oil  and  Gas  Laws  189 

Section  10.  Subject  to  the  provisions  of  this  Act  and 
the  rules  and  regulations  which  may  be  prescribed  by  the 
commission,  every  such  common  carrier  shall  receive  and 
transport  crude  petroleum  delivered  to  it  for  transporta- 
tion and  shall  so  receive  and  transport  same  and  perform 
its  other  duties  with  respect  thereto  without  discrimina- 
tion. 

Section  11.  It  shall  be  the  duty  of  the  commission  to 
employ  an  expert  who  shall  gather  information  and  assist 
the  commission  in  the  performance  of  its  duties  under  this 
Act.  The  salary  of  this  expert  shall  be  at  the  rate  of 
thirty-six  hundred  dollars  per  annum,  payable  in  equal 
monthly  installments.  And  the  commission  shall  employ 
such  other  assistants  as  may  be  necessary.  These  salaries 
and  expenses  and  the  expenses  of  the  hearings  and  investi- 
gations conducted  by  said  commission  shall  be  paid  out  of 
a  fund  to  be  derived  from  a  tax  of  one-twentieth  of  one 
f>er  cent  of  the  market  value  of  crude  petroleum  produced 
within  this  State,  which  tax  is  hereby  levied,  and  which 
tax  shall  be  in  addition  to  and  collected  in  the  same  man- 
ner as  the  present  gross  receipts  production  tax  on  crude 
petroleum.  Producers  of  crude  petroleum  are  hereby  re- 
quired to  make  reports  of  production  in  the  same  manner 
and  under  the  same  penalties  as  for  the  gross  production 
tax.  The  tax  thus  collected  shall  be  paid  into  the  State 
treasury  as  other  revenue,  and  shall  be  paid  out  in  war- 
rants as  other  State  funds.  Any  yearly  excess  of  the  tax 
over  and  above  the  requirements  of  the  commission  shall 
become  a  part  of  the  general  revenue  of  the  State  and  any 
deficit  shall  be  made  up  out  of  the  general  revenue  of  the 
State. 

Section  12.  The  sum  of  five  thousand  dollars  is  here- 
by appropriated  out  of  the  general  revenue  of  the  State 
not  otherwise  appropriated  for  the  purpose  of  paying  the 
salary  of  the  expert  for  the  commission,  and  other  ex- 
penses incurred  by  the  commission  hereunder  until  the 
petroleum  tax  becomes  available. 

Section  13.  The  salary  of  the  expert  for  the  commis- 
sion shall  be  paid  by  monthly  warrants  drawn  by  the 
State  Comptroller  on  the  State  Treasurer.    Other  expenses 


190  Oil  and  Gas  Laws 

of  the  commission,  such  as  traveling  expenses,  expenses 
ot  witness,  stenographers  and  stationery,  shall  be  paid  by 
IiKc  warrants  issued  upon  duly  verified  statements  of  the 
persons  entitled,  with  the  approval  of  the  chairman  of  the 
commission  endorsed  thereon. 

Section   14.     This  Act  shall  be  cumulative  of  all  the 
laws  of  this   State,  which  are  not  in  direct  conflict  here 
with,  regulating  the  control  of  pipe  line  companies  or  sim- 
ilar corporations,  in  this  State. 

Section  15.  If  any  provision  of  this  Act  shall  be 
held  unconstitutional  or  for  any  other  reason  shall  be  held 
to  be  void,  or  if  more  than  one  provision  of  this  Act  shall 
be  held  to  be  void,  such  holding  shall  not  have  the  effect 
to  nullify  the  remaining  parts  of  this  Act,  but  the  parts 
not  so  held  to  be  void  shall  nevertheless  remain  in  full 
force  and  effect. 

Section  16.  Whereas,  there  is  no  law  in  this  State 
regulating  corporations,  persons  or  associations  of  persons 
engaged  in  the  business  of  transporting  crude  petroleum  by 
pipe  line  for  hire,  and  no  law  bringing  persons  and  associa- 
tions of  persons  so  engaged  in  the  transportation  of  crude 
petroleum  by  pipe  lines  within  the  definition  of  common 
carriers  and  public  utilities,  and  no  tribunal  having  juris- 
diction thereof,  now  therefore  it  is  hereby  declared  that  an 
emengency  exists  creating  an  imperative  public  necessity 
for  the  suspension  of  the  constitutional  rule  requiring  bills 
to  be  read  on  three  several  days  and  the  same  is  hereby 
suspended,  and  this  law  shall  take  effect  and  be  in  force 
from  and  after  its  passage,  and  it  is  so  enacted. 

Approved  February  20,  1917. 

Takes  effect  90  days  after  adjournment. 


Oil  and  Gas  Laws  191 

PIPE  LINE  RULES. 

RAILROAD  COMMISSION  ORDERS. 

PIPE  LINE  ORDER  NO.  5. 

(Hearing  No.  1931,  April  22,  1919) 

Austin,  Texas,  June  5,  1919. 

In  pursuance  of  notice  given  and  public  hearing  held 
in  the  above  numbered  cause,  it  is  hereby  ordered  by  the 
Railroad  Commission  of  Texas,  that  every  person,  firm, 
corporation,  limited  partnership,  joint  stock  association,  or 
association  of  any  kind  whatever,  owning,  operating  or 
transported  through  the  pipe  lines  of  the  reporting  carrier, 
hereby  required  to  file  with  the  Railroad  Commission  of 
Texas,  at  its  office  in  the  City  of  Austin,  on  the  dates  and 
covering  the  periods  hereinafter  specified,  reports  in 
writing,  verified  under  oath  of  the  President  or  other 
officer  of  the  reporting  carrier,  showing  the  following  in- 
formation : 

First — (a)  The  total  number  of  receiving  stations  es- 
tablished by  the  reporting  carrier  for  the  reception  and 
transportation  of  crude  petroleum  through  its  pipe  lines, 
giving  the  name  or  number,  if  any,  by  which  said  stations 
are  designated,  the  field  or  district  where  located,  and  the 
county  or  counties  served  by  each  such  receiving  station. 

(b)  The  total  number  of  delivery  stations  established 
by  the  reporting  carrier  for  the  delivery  of  crude  petro- 
leum transported  through  its  pipe  lines,  giving  the  name 
or  number,  if  any,  by  which  said  delivery  stations  are 
designated,  and  where  located. 

(c)  The  total  number  of  barrels  of  crude  petroleum 
gathered  by  each  receiving  station  and  run  into  the  pipe 
lines  of  the  reporting  carrier. 

(d)  The  total  number  of  barrels  of  crude  petroleum 
managing  any  pipe  line  or  any  part  of  any  pipe  line  withm 
the  State  of  Texas  for  the  transportation  of  crude  petro- 
leum for  the  public  for  hire,  or  engaged  in  the  business  of 
transporting  crude  petroleum  by  pipe  line,  be  and  they  are 
between  points  within  the  State  of  Texas,  showing  separ- 
ately th^  number  of  barrels  transported  for  its  own  ac- 
connt  and  the  number  of  barrels  transported  for  others. 


192  Oil  and  Gas  Laws 

(e)  The  total  number  of  barrels  of  crude  petroleum 
delivered  by  the  reporting  carrier  subsequent  to  transpor- 
tation by  it,  showing  to  whom  delivered  and  at  what  sta- 
tion delivered. 

The  information  required  by  Paragraphs  (a),  (b), 
(c),  (d)  and  (e)  above  shall  be  furnished  by  monthly 
reports,  to  be  filed  not  later  than  the  15th  day  of  the 
month  following  the  calendar  month  for  which  the  report 
is  rendered,  and  such  reports  to  begin  with  the  month  of 
June,  1919. 

Second — (a)  The  total  amount  of  tankage,  showing 
brirrel  capacity,  held  by  the  reporting  carrier  for  the 
storage  of  crude  petroleum,  showing  separately  the  amount 
i:  wooden  tankage,  in  earthen  tankage  and  in  steel  tank- 
age, and  where  located. 

(b)  The  total  number  of  barrels  of  crude  petroleum 
held  in  storage  by  the  reporting  carrier  for  others. 

(c)  The  total  number  of  barrels  of  crude  petroleum 
owned  and  held  by  the  reporting  carrier  for  its  own  ac- 
count. 

(d)  The  total  amount  of  unfilled  storage  held  by  the 
reporting  carrier,  showing  separately  the  amount  in  wood- 
en tankage,  in  earthen  tankage  and  in  steel  tankage,  and 
where  located. 

The  information  required  by  Paragraphs  (a),  (b), 
(c)  and  (d)  above  shall  be  the  total  storage  capacity,  the 
amounts  of  oil  held  and  the  unfilled  storage  capacity  on 
the  last  day  of  each  calendar  month,  to  be  filed  on  or 
before  the  15th  day  of  the  month  following  the  day  for 
which  the  report  is  rendered,  and  such  reports  to  begin 
with  June  30,  1919. 

The  information  required  by  the  First  division  of  this 
of  this  order  shall  be  reported  on  the  same  (one)  form,  and 
shall   be  designated  as  "A"  Report." 

The  information  required  by  the  Second  division  of 
this  order  shall  be  reported  on  the  same  (one)  form, 
and  shall  be  designated  as  "B"  Report." 


Oil  and  Gas  Laws  193 

Pipe  Line  Order  No.  No.  2,  issued  by  this  Commis- 
sion under  date  of  July  20,  1917,  is  hereby  canceled. 

Allison  Mayfield,  Chairman; 
Earle  B.  Mayfield, 
Clarence  E.  Gilmore, 

Commissioners. 
Attest : 

E.  R.  McLean, 

Secretary. 

RAILROAD  COMMISSION  ORDERS. 

OFFICE  OF 

RAILROAD  COMMISSION  OF  TEXAS. 

pipe  line  rules  and  regulations. 

Austin,  Texas,  July  26,   1919. 

In  pursuance  of  the  provisions  and  requirements  of 
Chapter  30  of  the  Acts  of  the  Regular  Session  of  the 
Thirty-fifth  Legislature  of  Texas,  approved  February  20, 
1917,  being  the  Act  "Regulating  Pipe  Lines,"  and  in  pur- 
suance further  of  notice  given  by  Pipe  Line  Order  No.  6, 
issued  by  this  Commission  on  June  11,  1919,  and  of  pub- 
lic hearing  held  on  July  8,  1919,  it  is  hereby  ordered  by 
the  Railroad  Commission  of  Texas  that  every  person, 
firm,  corporation,  limited  partnership,  joint  stock  associa- 
tion, or  association  of  any  kind  whatever,  owning,  operat- 
ing or  managing  any  pipe  line,  or  any  part  of  any  pipe 
line,  for  the  gathering,  receiving,  loading,  transporting, 
storing  ^nd  delivering  of  crude  petroleum,  within  the  State 
of  Texas,  as  a  common  carrier,  shall  be  subject  to  and 
governed  by  the  following  rules  and  regulations  until  the 
same  are  hereafter  modified  or  changed  by  other  and  fu- 
ture general  orders  of  this  Commission,  or  special  orders 
applicable  only  to  particular  oil  fields. 

For  the  sake  of  brevity,  in  these  rules  and  regulations, 
the  common  carriers  herein  specified  shall  be  referred  to 
as  "pipe  lines,"  and  the  owners  or  shippers  of  crude  pe- 
troleum by  pipe  lines  shall  be  referred  to  as  "shippers." 


194  Oil  and  Gas  Laws 

Rule  1.  All  Marketable  Oil  to  Be  Received  for  Trans- 
portation.— By  the  term  "marketable  oil"  is  meant  any 
crude  petroleum  adapted  for  refining  or  fuel  purposes, 
properly  settled  and  containing  not  more  than  two  (2) 
per  cent  of  basic  sediment,  water  or  other  impurities 
above  a  point  six  (6)  inches  below  the  pipe  line  connec- 
tion with  the  tank.  Pipe  lines  shall  receive  for  transpor- 
tation all  such  "marketable  oil"  tendered;  provided,  first, 
no  pipe  line  shall  be  required  to  receive  for  shipment  from 
any  person,  firm,  corporation  or  association  of  persons, 
exceeding  3000  barrels  of  petroleum  in  any  one  day;  and, 
provided,  second,  if  the  oil  tendered  for  transportation 
aiffers  materially  in  character  from  that  usually  producea 
in  the  field  and  being  transported  therefrom  by  the  pipe 
line,  then  it  shall  be  transported  under  such  terms  as  the 
shipper  and  pipe  line  may  agree  or  the  Commission  may 
require. 

Rule  2.  Basic  Sediment,  How  Determined — Tempera- 
ture.— In  determining  the  amount  of  sediment,  water  or 
other  impurities,  the  pipe  lines  are  authorized  to  make  a 
test  of  the  oil  tendered  for  transportation  from  an  aver- 
age sample  from  each  tank  of  the  oil  tendered  for  trans- 
portation, by  the  use  of  a  centrifugal  machine  or  by  the 
use  of  any  other  appliance  agreed  upon  by  the  pipe  line 
and  the  shipper.  The  same  method  of  ascertaining  the 
amount  of  the  sediment,  water  or  other  impurities  shall 
be  used  in  the  delivery  as  in  the  receipt  of  oil.  Pipe  lines 
shall  not  be  required  to  receive  for  transportation,  nor 
shall  consignee  be  required  to  accept  as  a  delivery,  any 
oil  of  a  higher  temperature  than  ninety  (90)  degrees 
Fahrenheit,  except  that  during  the  summer  oil  shall  be 
received  at  any  atmospheric  temperature  and  may  be  de- 
livered at  like  temperature.  Consignee  shall  have  the 
same  right  to  test  the  oil  upon  delivery  at  destination  that 
the  pipe  line  has  to  test  before  receiving  from  the  shipper. 

Rule  3.  "Barrel"  Defined. — For  the  purpose  of  these 
rules  and  regulations,  a  "barrel'  of  crude  petroleum  is 
declared  to  be  forty-two  (42)  gallons.  United  States 
measurement,  at  a  test  of  sixty  (60)   degrees  Fahrenheit. 

Rule  4.     Oil   Involved   in   Litigation,   Etc. — Indemnity 


Oil  and  Gas  Laws  195 

Against  Loss. — When  any  oil  tendered  for  transportation 
is  involved  in  litigation,  or  the  ownership  of  which  may 
be  in  dispute,  or  which  may  be  encumbered  by  lien  or 
charge  of  any  kind,  the  pipe  lines  may  require  of  ship- 
pers an  indemnity  bond  to  protect  them  against  all  loss. 

Rule  5.  Storage. — Pipe  lines  shall  provide,  without 
additional  charge,  sufficient  storage,  such  as  is  incident 
and  necessary  to  the  transportation  of  oil,  including  stor- 
age at  destination  or  so  near  thereto  as  to  be  available  for 
prompt  delivery  to  destination  point,  for  five  (5)  days 
from  the  date  of  offer  of  delivery  at  destination. 

Rule  6.  Identity  of  Oil,  Maintenance  of. — Pipe  lines, 
iat  their  election,  shall  deliver  to  consignee,  either  the  iden- 
tical oil  received  for  transportation,  subject  to  such  con- 
sequences of  mixing  with  other  oil  as  are  incident  to  the 
usual  pipe  line  transportation,  or  they  may  make  delivery 
from  their  common  stock  at  destination ;  provided,  if  this 
last  be  done  the  delivery  shall  be  of  substantially  like  kind 
and  market  value. 

Rule  7.  Minimum  Quantity  to  Be  Received. — Pipe 
lines  shall  not  be  required  to  receive  less  than  one  (1) 
tank  carload  of  oil  when  oil  is  tendered  for  loading  into 
tank  cars  at  pipe  line  destination.  When  oil  is  tendered 
for  transportation  for  other  than  tank  car  delivery,  pipe 
lines  shall  not  be  required  to  receive  less  than  five  hun- 
dred (500)  barrels. 

Rule  8.  Gathering  Charges. — Tariffs  to  be  filed  by  the 
pipe  lines  shall  specify  separately  the  charges  for  gather- 
ing of  the  oil  and  for  the  transportation  of  same  and  for 
delivery  of  same,  if  any. 

Rule  9.  Gauging,  Testing  and  Deductions. — All  oil 
tendered  pipe  lines  for  transportation  shall  be  gauged  and 
tested  by  a  representative  of  the  pipe  line  prior  to  its 
receipt  from  the  shipper;  but  the  shipper  shall  at  all  times 
have  the  privilege  of  being  present  or  represented  at  the 
gauging  and  testing.  Quantities  shall  be  computed  from 
correctly  compiled  tank  tables  showing  two  (2)  per  cent 
less  than  the  full  capacity  of  the  tank  in  all  the  oil  fields 
of   Texas,   except   in   the   coastal    oil   field,   in   which   the 


196  Oil  and  Gas  Laws 

tank  tables  shall  be  compiled  showing  one  (1)  per  cent 
less  than  full  capacity  of  tank.  Corrections  may  be  made 
for  temperature,  allowing  or  deducting  at  the  rate  of  one 
(1)  per  cent  for  every  twenty-five  (25)  degrees  in  temper- 
ature below  or  above  sixty  (60)  degrees  Fahrenheit.  Pipe 
lines  may  deduct  the  full  per  cent  of  basic  sediment,  water 
and  other  impurities  as  the  centrifugal  or  other  test  agreed 
upon  may  show,  except  that  no  such  deduction  shall  be 
made  when  such  test  shows  only  one-half  of  one  per  cent 
or  less  of  such  basic  sediment,  water  and  other  impurities. 
A  further  deduction  of  one  (1)  per  cent  for  evaporation 
and  loss  during  transportation  shall  be  made  and  the  net 
balance  shall  be  the  quantity  deliverable  by  the  pipe  line. 

Rule  10.  Delivery  Tenders  and  Demurrage. — Pipe 
lines  shall  transport  oil  with  reasonable  diligence,  consid- 
ering the  quality  of  the  oil,  the  distance  of  transportation, 
and  other  material  elements,  but  may  at  any  time  after 
receipt  of  a  consignment  of  oil,  upon  twenty-four  (24) 
hours'  notice  to  the  consignee,  tender  oil  for  delivery  from 
its  common  stock  at  the  point  of  destination,  conformably 
to  Rule  6,  at  the  rate  of  not  exceeding  ten  thousand 
(10,000)  barrels  per  day  of  twenty-four  (24)  hours. 
Computation  of  time  of  storage  (as  provided  for  in  Rule 
5)  shall  begin  at  the  expiration  of  such  notice.  At  the 
expiration  of  the  time  allowed,  in  Rule  5,  for  storage  at 
destination,  pipe  lines  may  assess  a  demurrage  charge  on 
all  oil  tendered  for  delivery  and  remaining  undelivered,  at 
the  rate,  for  the  first  ten  (10)  days,  of  one-tenth  of  one 
cent  per  barrel,  during  the  next  ten  (10)  days  at  the  rate 
of  two-tenths  of  one  cent  per  barrel,  and  thereafter  at  the 
rate  of  three-tenths  of  one  cent  per  barrel  for  each  day  of 
twenty-four  (24)  hours  or  fractional  part  thereof. 

Rule  11.  Unpaid  Charges,  Lien  For  and  Sale  to  Cov- 
er,— Pipe  lines  shall  have  a  lien  on  all  oil  to  cover  charges 
for  transportation,  including  demurrage,  and  may  withhold 
delivery  of  oil  until  said  charges  are  paid.  If  such 
charges  shall  remain  unpaid  for  more  than  five  (5)  days 
after  notice  of  readiness  to  deliver,  the  pipe  line,  by  any 
agent,  may  sell  said  oil  at  public  auction  at  the  Greneral 
Office  of  the  pipe  line,  on  any  day  not  a  Legal  Holiday 


Oil  and  Gas  Laws  197 

and  not  less  than  forty  eight  (48)  hours  after  publication 
of  notice  in  a  daily  newspaper  of  general  circulation  pub- 
lished in  the  city  where  said  General  Office  is  located, 
said  notice  giving  the  time  and  place  of  the  sale  and  the 
quantity  of  the  oil  to  be  sold.  From  the  proceeds  of  the 
sale  the  pipe  line  may  pay  itself  all  charges  lawfully  ac- 
cruing, including  demurrage,  and  all  expenses  of  said  sale, 
and  the  net  balance  shall  be  held  for  whomsoever  may  be 
lawfully  entitled  thereto. 

Rule  12.  Notice  of  Claims. — Notice  of  claims  for  loss, 
damage  or  delay  in  connection  with  the  shipment  of  oil 
must  be  made  in  writing,  to  the  pipe  line  within  ninety-one 
(91)  days  after  such  shall  have  accrued:  or,  in  case  of 
failure  to  make  delivery,  within  ninety-one  (91)  days 
after  a  reasonable  time  for  delivery  shall  have  elapsed. 

Rule  13.  Telegraph  or  Telephone  Line — Shipper  to 
Use. — Where  pipe  lines  maintain  a  private  telegraph  or 
telephone  line,  shippers  may  use  the  same,  without  extra 
charge,  for  messages  incident  to  shipments.  However, 
the  pipe  line  shall  not  be  held  liable  for  delivery  of  mes- 
sages away  from  its  office,  for  delay  in  transmission  nor 
for  interruption  of  service. 

Rule  14.  Contracts  of  Transportation. — When  a  con- 
signment of  oil  is  accepted,  pipe  lines  shall  give  the  ship- 
per a  run-ticket,  and  shall  thereafter  render  to  the  shipper 
a  statement  which  shall  show  the  amount  of  oil  received 
for  transportation,  the  points  of  origin  and  destination, 
corrections  made  for  temperature,  deductions  made  for 
impurities,  and  the  rate  for  such  transportation. 

Rule  15.  Shipper's  Tanks,  Etc. — Inspection. — When 
a  shipment  of  oil  has  been  tendered  for  transportation,  the 
pipe  line,  by  its  representative,  shall  have  the  right  to  go 
upon  the  premises  where  such  oil  is  produced  or  stored 
and  have  access  to  any  and  all  tanks  or  storage  recepta- 
cles for  the  purpose  of  making  any  examination,  inspec- 
tion or  test  authorized  by  these  regulations. 

Rule  16.  Apportionment  When  Tenders  Are  in  Ex- 
cess of  Facilities. — When  there  shall  be  tendered  to  any 
pipe  line,  for  transportation,  more  oil  than  can  be  imme- 


198  Oil  and  Gas  Laws 

diately  transported,  the  transportation  furnished  by  the 
pipe  line  shall  be  apportioned  among  all  shippers  in  pro- 
portion to  the  amounts  tendered  by  each ;  provided,  no 
tender  for  transportation  shall  be  considered  beyond  the 
amount  which  the  party,  requesting  the  shipment  then  has 
on  hand  accessible  to  and  ready  for  shipment  by  the  pipe 
line.  The  pipe  line  shall  be  considered  as  a  shipper  of  oil 
produced  or  purchased  by  itself  and  held  for  shipment 
through  its  lines,  and  its  oil  shall  be  entitled  to  partici- 
oate  in  such  apportionment. 

Rule  17.  Interchange  of  Tonnage. — Pipe  lines  shall 
provide  the  necessary  connections  and  facilities  for  the  ex- 
more  pipe  lines,  when  the  Railroad  Commission  of  Texas 
finds  that  a  necessity  exists  for  connection,  and  under  such 
regulations  as  said  Commission  may  determine  in  each 
case. 

Rule  18.  Receipt  and  Delivery,  Necessary  Facilities 
For. — Pipe  lines  shall  install  and  maintain  facilities  for 
the  receipt  and  delivery  of  marketable  crude  petroleum  of 
shippers  at  any  point  on  their  lines  when  the  Railroad 
Commission  of  Texas  finds  that  a  necessity  exists  there- 
for, and  under  such  regulations  as  the  said  Commission 
may  prescribe. 

Rule  19.  Fires,  Lightning  and  Leakage,  Reports  of 
Loss  From. — All  pipe  lines  shall  immediately  notify  the 
Railroad  Commission  _  of  Texas,  by  telegraph,  telephone 
or  letter,  of  all  fires  which  occur  at  oil  tanks  owned  or 
controlled  by  them,  or  tanks  struck  by  lightning,  and  they 
shixll  also  in  like  manner  report  all  breaks  or  leaks  in  tanks 
or  pipe  lines  and  from  which  breaks  oil  is  escaping.  All 
pipe  lines  shall  report  in  writing,  to  the  Commission  by 
the  15th  day  of  each  calendar  month,  the  estimated  amount 
of  loss  of  oil  by  fire  or  leakage  from  tanks  and  pipe  lines 
for  the  preceding  month ;  this  not  to  include  leakage  or 
evaporation  ordinarily  and  naturally  incident  to  transpor- 
tation. 

No  risk  of  fire,  storm,  flood  or  act  of  God,  and  no 
risk   resulting   from   riots,   insurrection,   rebellion,   war  or 


Oil  and  Gas  Laws  199 

act  of  the  public  enemy,  or  from  quarantine  or  authority 
of  law  or  any  order,  requisition  or  necessity  of  the  gov- 
ernment of  the  United  States  in  time  of  war,  shall  be 
borne  by  the  pipe  lines,  nor  shall  any  liability  accrue  to 
them  for  any  damage  thereby  occasioned ;  and  in  case  of 
loss  of  any  crude  oil  from  any  such  causes,  after  oil  has 
been  received  for  transportation  and  before  the  same  has 
been  delivered  to  the  consignee,  the  shipper  shall  bear 
a  loss  in  such  proportion  as  the  amount  of  his  shipment  is 
to  all  of  the  oil  held  in  transportation  by  the  pipe  line  at 
the  time  of  such  loss,  and  the  shipper  shall  be  entitled  to 
have  delivered  only  such  portion  of  his  shipment  as  may 
remain  after  a  deduction  of  his  due  proportion  of  such 
loss,  but  in  such  event  the  shipper  shall  be  required  to 
pay  charges  only  on  the  quantity  of  oil  delivered;  pro- 
vided this  rule  shall  not  apply  in  case  of  negligence  of  the 
pipe  lines. 

Rule  20. — Printing  and  Posting. — Pipe  lines  shall  have 
these  General  Rules  and  Regulations  printed  on  their 
tariff  sheets,  and  shall  post  the  same  in  a  prominent  place 
in  their  various  offices  for  the  inspection  of  the  shipping 
public.  They  shall  post  and  publish  only  such  Rules  and 
Regulations  as  may  be  adopted  by  the  Railroad  Commis- 
sion of  Texas  as  general  rules  or  such  special  rules  as 
may  be  adopted  for  any  particular  field. 

This  order  shall  take  effect  and  be  in  force  on  and  af- 
ter August  1,  1919,  until  modified  or  canceled  by  this 
Commission. 

Allison    M.wfield,   Chairman; 

Earle  B.  M.wfield, 

Clarence  E.  Gilmore, 

Commissioners. 
Attest: 

E.  R.  McLean,  Secretary. 


200  Oil  and  Gas  Laws 

GENERAL  LAWS,  36TH  LEGISLATURE,  PAGE  272. 

AMENDING  THE  REVISED  CIVIL  STATUTES 

RELATING  TO  COMMON  CARRIER 

PIPE  LINES. 

S.  B.  No.  78.]  Chapter  146. 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  L  That  Article  1306  of  Chapter  24,  Title  25, 
of  the  Revised  Civil  Statutes  of  1911  be  and  the  same  is 
hereby  amended  so  as  hereafter  to  be  and  read  as  follows : 

Article  1306.  Such  corporation  shall  have  the  right 
and  power  to  enter  upon,  condemn  and  appropriate  the 
lands,  rights  of  way,  easements  and  property  of  any  person 
or  corporation,  and  shall  have  the  right  to  lay  its  pipes 
and  pipe  lines  across  and  under  any  public  road,  provided 
that  no  pipes  or  pipe  lines  shall  be  laid  parallel  with  and 
on  any  public  highway,  closer  than  fifteen  feet  from  the 
improved  section  thereof  except  with  the  approval  and 
under  the  direction  of  the  Commissioners  Court  of  the 
County  in  which  such  public  highway  is  located,  or  under 
any  railroad,  railroad  right  of  way,  street  railroad,  canal 
or  stream  in  this  State,  and  to  lay  its  pipes  and  pipe  lines 
across  or  along  and  under  any  street  or  alley  in  any  incor- 
porated city  or  town  in  this  state,  with  the  consent  and 
under  the  direction  of  the  board  of  aldermen  or  city  coun- 
cil of  such  city  or  town.  The  manner  and  method  of  such 
condemnation  shall  be  the  same  as  is  provided  by  law  in 
the  case  of  railroads ;  provided,  that  such  pipes  or  pipe 
lines  shall  not  pass  through  or  under  any  cemetery,  church 
or  college,  school  house,  residence,  business  or  storehouse, 
or  through  or  under  any  building  in  this  state,  except  by 
the  consent  of  the  owner  or  owners  thereof ;  and  provided, 
further,  that  all  such  pipes  and  pipe  lines,  when  same  shall 
pass  through  or  over  the  cultivated  or  improved  lands  of 
another,  shall  be  well  buried  under  ground  at  least  twenty 
inches  under  the  surface,  and  such  surface  shall  be  proper- 
ly and  promtply  restored  by  such  corporation  unless  other- 
wise consented  to  by  the  owners  of  such  land ;  provided, 
further,  that  if  such  pipes  or  pipe  lines  shall  be  laid  over 


Oil  and  Gas  Laws  201 

or  along  any  uncultivated  or  unimproved  lands  of  another 
and  such  lands  shall  thereafter  become  cultivated  or  im- 
proved, such  pipes  or  pipe  lines,  shall  be  buried  by  said 
corporation  as  herein-before  provided,  within  a  reasonable 
time  after  notice  by  the  owner  of  such  lands,  or  his  agent, 
to  said  corporation  or  any  agent  thereof ;  and  provided, 
further,  that  whenever  such  pipes  or  pipe  lines  shall  cross 
any  public  road  or  highway,  railroad,  street  railroad,  or 
street  or  alley,  the  said  pipes  and  pipe  lines  shall  be  so 
buried  and  covered  as  not  to  interfere  with  the  use  and  oc- 
cupancy of  such  road,  highway,  street  or  alley  by  the  pub- 
lic, or  use  and  occupancy  of  such  railroad  or  street  rail- 
road by  the  owner  or  owners  thereof. 

Section  2.  That  every  person,  firm,  corporation,  lim- 
ited partnership,  joint  stock  association,  or  association  of 
any  kind  whatsoever  owning,  operating  or  managing  any 
pipe  line,  or  any  part  of  any  pipe  line  within  the  State  of 
Texas  for  the  transportation  of  crude  petroleum  that  is 
declared  to  be  a  common  carrier  by  and  is  subject  to  the 
provisions  of  Chapter  30  of  the  General  Laws  passed  by 
the  Thirty-fifth  Legislature,  approved  February  20,  1917, 
shall  have  the  right  and  power  of  eminent  domain,  in  the  ex- 
ercise of  which,  he,  it  or  they  may  enter  upon  and  condemn 
the  lands,  rights  of  way,  easements  and  property  of  any  per- 
son necessary  for  the  construction,  maintenance  or  operation 
of  his,  its  or  their  common  carrier  pipe  line,  the  man- 
ner and  method  of  such  condemnation  and  the  assess- 
ment and  the  payment  of  the  damages  therefor  to  be 
the  same  as  is  provided  by  law  in  the  case  of  rail- 
roads ;   and   shall   have    the    right    to    lay   his,   its   or   their 


202  Oil  and  Gas  Laws 

pipes  or  pipe  line  across  and  under  any  public  road,  pro- 
vided that  no  pipes  or  pipe  lines  shall  be  laid  parallel  with 
and  on  any  public  highway,  closer  than  fifteen  feet  from  the 
improved  section  thereof  except  with  the  approval  and  un- 
der the  direction  of  the  Commissioners  Court  of  the  Coun- 
ty in  which  such  public  highway  is  located,  or  under  any 
railroad,  railroad  rights  of  way,  street  railroads,  canal  or 
stream  in  this  State,  and  along  and  under  any  street  or 
alley  in  any  incorporated  city  or  town  in  this  State  with 
the  consent  and  under  the  direction  of  the  board  of  Alder- 
men or  city  council  of  such  city  or  town,  and  such  other 
rights  in  the  matter  of  laying  pipes  and  pipe  lines  as  are 
conferred  by  Article  1306  of  Chapter  24,  Title  25  of  the 
Revised  Civil  Statutes  of  Texas  of  1911  as  amended  by 
this  Act,  upon  corporations  organized  under  said  Chapter 
24,  subject,  however,  to  the  conditions,  limitations  and  re- 
strictions therein  stated. 

Section  2a.  That  every  person,  firm,  corporation,  lim- 
ited co-partnership,  joint  stock  association  or  associations 
of  any  kind  whatsoever  owning,  operating,  or  managing 
any  pipe  line,  or  any  part  of  any  pipe  line  within  the  State 
of  Texas  for  the  transportation  of  fuller's  earth  for  the 
public  for  hire,  the  same  are  hereby  declared  to  be  common 
carriers,  and  shall  have  the  rights  and  power  of  eminent 
domain,  and  may  condemn  the  necessary  sites,  rights  of 
way  and  easements,  under  the  same  terms,  and  subject  to 
the  same  conditions  as  are  conferred  by  Sections  1  and  2 
of  this  act,  on  like  persons  natural  or  otherwise,  owning, 
operating  or  managing  crude  petroleum  pipe  line  or  lines. 

Section  3.  That  all  laws  in  conflict  herewith  be  and 
the  same  are  hereby  repealed. 

The  fact  that  Chapter  30  of  the  General  Laws  of  the 
Thirty-fifth  Legislature  imposed  upon  persons,  firms,  cor- 
porations, limited  partnerships,  joint  stock  associations,  and 
other  associations  owning  and  operating  pipe  lines  the  duty 
and  burden  of  being  common  carriers  under  certain  condi- 
tions therein  defined,  without  the  corresponding  right  to 
condemn  lands,  rights  of  way  and  easements  so  as  to  make 


Oil  and  Gas  Laws  203 

ii  possible  for  them  to  perform  their  common  carrier 
duties,  and  the  fact  that  such  lack  of  power  will  seriously 
interfere  with  the  construction  and  operation  of  pipe  lines, 
the  development  of  the  State  and  the  performance  for  the 
public  of  the  common  carrier  duties  defined  and  imposed 
in  said  Chapter  30  creates  an  emergency  and  imperative 
necessity  that  the  Constitutional  Rule  requiring  a  Bill  to  be 
read  on  three  several  days  be  suspended,  and  that  this 
bill  take  effect  from  and  after  its  passage,  and  it  is  so 
enacted. 

Approved  March  31,  1919. 

Became  effective  March  31,  1919. 


204  Oil  and  Gas  Laws 

GENERAL    LAWS    OF    TEXAS,    THIRD    CALLED 

SESSION,  36TH  LEGISLATURE,  PAGE  18. 

PUBLIC    GAS    UTILITIES— TO    REGULATE    AND 

PLACE    UNDER    JURISDICTION    OF 

RAILROAD  COMMISSION. 

H.  B.  No.  IL 

"An  Act  defining  and  declaring  certain  natural  gas  pipe 
lines  and  business  public  utilities  as  virtual  monopolies 
and  subjecting  the  same  to  the  power  and  jurisdiction 
of  the  Railroad  Commission  of  Texas  to  regulate  and 
to  enact  rules,  regulations,  orders  and  decisions  for  the 
government  and  conduct  of  the  business  of  the  same, 
and  requiring  of  said  utilities  compliance  with  the  same, 
and  safe,  sufficient,  and  adequate  service ;  excepting 
from  this  Act  plants  owned  by  municipalities ;  requiring 
charges  of  said  public  utilities  subject  to  this  Act  for 
their  services  or  commodities  to  be  just,  reasonable, 
non-discriminatory  and  adequate,  and  providing  for  the 
reimbursement  of  charges  collected  in  excess  of  per- 
mitted or  reasonable  charges  to  persons  entitled  there- 
to conferring  on  said  Commission  power  to  prescribe 
methods  of  accounts,  to  require  the  filing  of  reports 
and  schedules,  to  detrmine  the  rates,  charges,  returns 
and  practices  of  said  utilities  upon  application  or  its 
own  initiative,  prohibiting  discrimination  in  rates, 
charges  or  compensations  received  by  said  utilities  with 
certain  exceptions ;  providing  for  retaining  control  over 
distributing  companies  by  the  municipal  governments 
of  the  various  municipalities,  but  allowing  the  utiUty  to 
appeal  to  the  Commission  in  certain  cases ;  providing 
for  judicial  review  of  acts,  orders,  decisions  of  the  said 
Commission  and  the  conduct  thereof  and  of  appeals, 
and  conferring  jurisdiction  on  the  District  Courts, 
Courts  of  Civil  Appeals  and  the  Supreme  Court  in  such 
cases ;  providing  for  the  enforcement  of  the  Commis- 
sion's orders,  rules,  regulations,  decisions  and  the  pro- 
visions of  this  Act  by  mandamus,  mjunction,  manda- 
tory injunction,  and  receivership  and  penalties  for  the 
violation  of  same,  and  conferring  jurisdiction  on  the 
district  courts  and  providing  for  appeals  subject  to  this 


Oil  and  Gas  Laws  205 

Act,  to  maintain  offices  and  keep  records  within  certain 
counties  or  municipalities,   requiring  said  utilities  and 
their  officers,  agents  and  employees  to  obey  the  orders 
of  the  Commission  and  providing  penalties   for  viola- 
tion of  same  and  for  the  enforcement  thereof ;  requiring 
reports  of  annual  income  and  levying  a  gross  receipts 
tax  on  the  incomes  of  said  utilities,  and  authorizing  the 
Commission  to  employ  an  expert  and  other  assistants, 
and  directing  the    State   Treasurer  to   make   disburse, 
ments   for  the  payment   of   salaries   and  expenses   ap- 
proved by  the  Commission ;  fixing  fees,  salaries  and 
expenses  approved  by  the  Commission ;  fixing  fees  of 
sheriffs  and  constables  and  witnesses  and  authorizing 
process  to  secure  attendance  of  witnesses  and  requiring 
testimony  and  evidence  to  be  produced  providing  pen- 
alty for  unlawful  disclosures  of  information  received 
by  the  Commission's  employes,  declaring  the  sections 
and  clauses  separable  and  the  invalidity  of  one  shall  not 
invahdate  the  remaining;   repealing  Acts  inconsistent 
herewith,  and  declaring  an  emergency." 

Be  it  enacted  by  the  Legislature  of  the  State  of  Texas: 

Section  1.  The  terms  "Gas  Utility"  and  "Public  Util- 
ity," or  "Utility,"  as  used  in  this  Act  means  and  includes 
persons,  corporations  and  companies,  their  lessees,  trustees, 
and  receivers  appointed  by  any  court  whatsoever,  now  or 
hereafter,  owning,  managing,  operating  leasing  or  con- 
trolling within  this  State  any  wells,  pipe  lines,  plant,  prop- 
erty, equipment  facility,  franchise,  license  or  permit  for 
either  one  or  more  of  the  following  kinds  of  business : 

1.  (a)  Producing  or  obtaining,  transporting,  convey- 
ing, distributing  or  delivering  natural  gas,  for  public  use  or 
service  for  compensation. 

(b)  Or  for  sale  to  municipalities  of  persons  or  com- 
panies, in  those  cases  referred  to  in  paragraph  3  hereof, 
engaged  in  selling  or  distributing  natural  gas  to  the  public. 

(c)  Or  for  sale  or  delivery  of  natural  gas  to  any  per- 
son or  firm  or  corporation  operating  under  franchise  or  a 
contract  with  any  municipality  or  other  legal  subdivision  of 
the  State. 


206  Oil  and  Gas  Laws 

(d)  Or  for  sale  or  delivery  of  natural  gas  to  the  pub- 
lic for  domestic  or  other  use. 

2.  Owning,  or  operating  or  managing  a  pipe  line  for 
the  transportation  or  carriage  of  natural  gas,  whether  for 
public  hire  or  not,  if  any  part  of  the  right  of  way  for  said 
line  has  been  acquired,  or  may  hereafter  be  acquired,  by 
the  exercise  of  the  right  of  eminent  domain;  or  if  said 
line,  or  any  part  thereof,  is  laid  upon,  over  or  under  any 
public  road  or  highwty  of  this  State,  or  street  or  alley 
of  any  municipality,  or  the  right  of  way  of  any  railroad  or 
other  public  utility;  including  also  any  natural  gas  utility 
authorized  by  any  law  to  exercise  the  right  of  eminent 
domain, 

3.  The  business  of  producing  or  purchasing  natural 
gas  and  transportating  or  causing  the  same  to  be  trans- 
ported by  pipe  lines  to  or  near  the  limits  of  any  municipal- 
ity in  which  said  gas  is  received  or  distributed  or  sold 
to  the  public  by  another  public  utility,  or  by  said  municipal- 
ity, in  all  cases  where  such  business  is  in  fact  the 
only  or  practically  exclusive  agency,  is  hereby  declared  to  be 
gas  to  such  utility  or  municipality,  is  hereby  declared  to  be 
a  virtual  monopoly  and  a  business  and  calling  afifected 
with  a  public  interest,  and  the  said  business  and  all  prop- 
erty employed  therein  within  this  State  are  hereby  subject 
to  the  provisions  of  this  Act  and  to  the  jurisdiction  and 
regulation  of  the  Commission  as  a  gas  utility. 

Every  gas  utility  as  defined  in  this  Act  is  hereby  de- 
clared to  be  afifected  with  a  public  interest  and  subject 
to  the  jurisdiction,  control  and  regulation  of  the  Com- 
mission as  provided  in  this  Act,  provided  that  the  rates 
and  service  of  any  gas  utility  plant,  property,  equipment 
or  facilities  owned  or  operated  by  a  municipality  shall 
not  be  subject  to  the  jurisdiction  or  control  of  the  Com- 
mission. 

Section  2.  It  is  declared  that  the  operation  of  gas  pipe 
lines  to  which  this  Act  applies  for  buying,  selling,  trans- 
porting, producing  or  otherwise  dealing  in  natural  gas  is  a 
business  which  in  its  nature  and  according  to  the  estab- 
lished method  of  conducting  the  business  is  a  monopoly, 


Oil  and  Gas  Laws  207 

in  the  mode  of  the  conduct  of  which  the  pubUc  is  in- 
terested, and  as  such  is  subject  to  regulation  by  law;  and 
accordingly  it  is  provided  that  from  and  after  the  expira- 
tion of  the  time  this  law  takes  effect  the  business  of  pur- 
chasing or  selling  gas  or  of  distributing  such  gas,  or  of 
transporting  such  gas  or  of  producing  or  dealing  in  such 
gas  pipe  line  so  used  in  connection  with  such  business  be 
subject  to  the  jurisdiction  herein  conferred  to  upon  the 
Railroad  Commission  of  Texas,  hereinafter  also  referred 
to  as  the  Commission.  It  shall  be  the  duty  of  the  Attor- 
ney General  of  Texas  to  enforce  this  provision  by  injunc- 
tion or  other  remedy. 

Section  3.  The  Railroad  Commission,  after  due  notice 
and  upon  full  and  fair  hearing,  shall  have  the  power  and  it 
shall  be  its  duty  to  fix  and  establish  and  enforce  the  ade- 
quate and  reasonable  price  of  gas  and  fair  and  reasonable 
rates  of  charges  and  regulations  for  transporting,  pro- 
ducing, distributing,  buying,  selling,  and  delivering  gas  by 
such  pipe  lines  in  this  State;  to  establish  fair  and  equitable 
rules  and  regulations  for  the  full  control  and  supervision 
of  said  gas  pipe  lines  and  all  their  holdings  pertaining 
to  the  gas  business  in  all  their  relations  to  the  public  as 
the  Commission  may  from  time  to  time  deem  proper;  to 
establish  a  fair  and  equitable  division  of  the  proceeds  of 
the  sale  of  gas  between  the  companies  transporting  or 
producing  the  gas  and  the  companies  distributmg  or  sell- 
ing it;  and  to  prescribe  and  enforce  rules  and  regula- 
tions for  the  government  and  control  of  such  pipe  lines 
in  respect  to  their  gas  pipe  lines  and  producing,  receiving, 
transporting  and  distributing  facilities,  and  to  regulate 
and  apportion  the  supply  of  gas  between  towns,  cities  and 
corporations,  and  when  the  supply  of  gas  controlled  by 
any  gas  pipe  line  shall  be  inadequate,  the  Commission  shall 
have  the  power  and  it  shall  be  its  duty  to  prescribe  fair 
and  reasonable  rules  and  regulations  requiring  such  gas 
pipe  lines  to  augment  their  supply  of  gas,  when  in  the 
judgment  of  the  Commission  it  is  practicable  to  do  so; 
and  it  shall  be  the  Commission's  duty  to  exercise  such 
power,  whether  upon  its  own  motion  or  upon  petition  by 
any  person,   corporation,    municipal   corporation,     county, 


208  Oil  and  Gas  Laws 

or  commissioners  precinct  showing  a  substantial  interest  in 
the  subject,  or  upon  petition  of  the  Attorney  General,  or  of 
any  county  or  district  attorney  in  any  county  wherein  such 
business  or  any  part  thereof  may  be  carried  on.  All  or- 
ders and  agreements  of  any  company  or  corporation,  or 
any  person  or  persons  controlling  such  pipe  lines  estab 
lishing  or  prescribing  prices,  rates,  rules  and  regulations 
and  conditions  of  service,  shall  be  subject  to  review,  re- 
vision and  regulation  by  the  Commission  on  hearing  after 
notice  as  provided  for  herein  to  the  person,  firm,  corpora- 
tion^  partnership  or  joint  stock  association  owning  or 
controlling  or  operating  the  gas  pipe  line  affected.  In  the 
event  any  rate  or  charges  for  gas  or  for  service,  or  for 
meter  rental,  or  any  other  purpose  pertaining  to  the  opera- 
tion of  said  business  shall  be  made  or  promulgated  by 
any  person,  firm  or  corporation  owning  or  operating  any 
gas  pipe  line,  or  in  the  event  of  an  inadequate  service  in 
any  respect,  and  complaint  against  same  shall  be  filed  by 
any  person  authorized  by  this  act  to  file  such  petition, 
and  such  complaint  is  sustained  in  whole  or  in  part,  all 
persons  and  customers  of  said  gas  pipe  line  shall  have  the 
right  to  reparation  or  reimbursement  of  all  excess  in 
charges  so  paid  over  and  above  the  proper  rate  or  charge 
as  finally  determined  by  the  Railroad  Commission  from 
and  after  the  date  of  the  filing  of  such  complaint. 

Section  4.  The  Commission  may  require  of  all  persons 
or  corporations  operating,  owning  or  controlling  such  gas 
pipe  lines,  reports  duly  verified  under  oath,  of  the  total 
quantities  of  gas  distributed  by  such  pipe  lines  and  of 
that  held  by  them  in  storage,  as  also  of  their  source  of 
supply,  the  number  of  wells  from  which  they  draw  their 
supply,  the  amount  of  pressure  maintained,  and  the  amount 
and  character  and  description  of  the  equipment  employed, 
and  such  other  matters  pertaining  to  the  business  as  the 
Commission  may  deem  pertinent.  The  Commission  shall 
have  the  authority  and  power  to  hear  and  determine  com- 
plaints from  interested  persons,  firms  or  corporations;  to 
require  complainants  to  file  cost  bond,  to  require  attend- 
ance of  witnesses  at  any  hearing  provided  for  in  this  Act, 
requiring  their  fees  to  be  paid  by  the  losing  party  to  said 


Oil  and  Gas  Laws  209 

proceeding,  and  to  institute  suit  and  issue  such  writs  and 
process  as  may  be  necessary  for  the  enforcement  of  its 
orders. 

Section  5.  No  such  pipe  line  public  utility  shall  directly 
or  indirectly  charge,  demand,  collect  or  receive  from  any- 
one a  greater  or  less  compensation  for  any  service  ren- 
dered than  from  another  for  a  like  and  contemporaneous 
service;  provided  this  shall  not  limit  the  right  of  the 
Commission  to  prescribe  different  rates  and  regulations 
for  the  use  of  gas  for  manufacturing  and  similar  pur- 
poses and  provided  this  shall  not  limit  the  right  of  the 
Commission  to  prescribe  rates  and  regulations  for  service 
from  or  to  other  or  different  places,  ab  it  may  determine ; 
nor  shall  any  such  utility  discriminate  in  favor  of  or 
against  any  person,  place  or  corporation,  either  in  ap- 
portioning the  supply  of  gas  or  in  its  charges  therefor. 

Section  6.  Nothing  in  this  Act  shall  restrict  the  rights 
of  cities,  towns  and  municipalities  to  control  the  use  of 
their  public  streets  and  alleys ;  and  nothing  in  this  Act  shall 
be  construed  as  taking  away  from  the  cities,  towns  or  mu- 
nicipalities of  this  State  any  of  their  existing  powers  to 
regulate  the  rates,  service,  rules,  regulations  and  prac- 
tices of  public  utilities  operating  in  such  cities,  towns  or 
municipalities.  When  a  city  government  has  ordered  any 
existing  rate  reduced  the  gas  utility  affected  by  such  order 
may  appeal  to  the  Conmiission  by  filing  with  the  Commis- 
sion, on  such  terms  and  conditions  as  the  Commission 
may  direct,  a  petition  and  bond  to  review  the  decision, 
regulation,  restriction,  ordinance,  or  order  of  the  city, 
town  or  municipality.  Upon  such  appeal  being  taken 
the  Commission  shall  set  a  hearing  and  may  make  such 
order  or  decision  in  regard  to  the  matter  involved  in  the 
determination,  decision,  ordinance  or  order  of  the  city, 
town  or  municipality  as  the  Commission  may  deem  just 
and  reasonable.  Whenever  a  public  utility  so  appeals  from 
the  decision,  restriction,  ordinance  or  order  of  the  city, 
or  town  or  municipality,  to  the  Commission,  the  Com- 
mission shall  hear  such  appeal  de  novo  and  shall  treat  the 
appeal  or  complaint  as  though  it  were  an  original  com- 
plaint.    Whenever  any  local  distributing  company  or  con- 


210  Oil  and  Gas  Laws 

cern  whose  rates  have  been  fixed  or  may  hereafter  be  fixed 
by  any  municipal  government  desires  a  change  of  any  of 
its  rates,  rentals  or  charges,  it  shall  make  application 
to  the  municipal  government  or  the  city,  town  or  munici- 
pality in  which  such  utility  is  located  and  such  municipal 
government  shall  determine  said  application,  within  sixty 
days  after  said  application  is  presented  to  it,  unless  the  de- 
termination thereof  may  be  longer  deferred  by  agreement 
between  the  municipality  and  the  gas  utility  affected.  If 
the  municipal  government  should  reject  such  application  or 
fail  or  refuse  to  act  on  it  within  sixty  days,  then  the  utility 
may  appeal  to  the  Commission  as  herein  provided  but 
said  Commission  shall  determine  the  matters  involved  in 
any  such  appeal  within  sixty  days  after  the  filing  by  such 
utility  of  such  appeal  with  said  Commission  or  such  fur- 
ther time  as  such  utility  shall  in  writing  agree  to,  but  the 
rates  fixed  by  such  municipal  government  shall  remain  in 
full  force  and  effect  until  ordered  changed  by  the  Com- 
mission. 

Section  7.  The  pipe  line  expert  provided  for  in  Section 
11  of  the  Act  of  February  20,  1917,  being  an  Act  for  the 
regulation  of  oil  pipe  lines,  shall  likewise  assist  the  Com- 
mission in  the  performance  of  its  duties  under  this  Act,  un- 
der the  direction  of  the  Commission,  under  such  rules  and 
regulations  as  it  may  prescribe. 

Section  8.  The  Commission  shall  have  power  to  em- 
ploy and  appoint,  from  time  to  time,  such  experts,  assist- 
ants, accountants,  engineers,  clerks  and  other  persons  as  it 
shall  deem  necessary,  to  enable  it  at  all  times  to  inspect 
and  audit  all  records  or  receipts,  disbursements,  vouchers, 
prices,  pay  rolls,  time  cards,  books  and  official  records,  to 
inspect  all  property  and  records  of  the  utilities  subject  to 
the  provisions  hereof,  and  to  perform  such  other  service 
or  services  as  may  be  directed  by  the  Commission  or  un- 
der its  authority.  Such  persons  and  employes  of  the  Com- 
mission shall  be  paid  for  the  services  rendered  such  sums 
at  such  time  and  under  such  conditions  as  may  be  fixed 
and  prescribed  by  the  Commission,  and  such  salaries, 
wages  and  fees  shall  be  paid  out  of  the  moneys  as  funds 
as  in  this  Act  directed.     Provided,  however,  that  the  num- 


Oil  and  Gas  Laws  211 

ber  of  employes  and  appointees  employed  or  appointed 
under  this  Act,  and  the  sum  or  sums  of  money  paid  to 
them  for  their  services,  shall  be  subject  to  the  approval  of 
the  Board  of  Control,  and  no  employment  or  appointment 
hereinunder  shall  be  valid  without  such  approval. 

Section  9.  Each  witness  who  shall  appear  before  the 
Commission  or  a  Commissioner  at  a  place  outside  the 
county  of  his  residence  shall  receive  for  his  attendance 
three  ($3)  dollars  per  day  and  three  cents  per  mile 
traveled  by  the  nearest  practicable  route  in  going  to  and 
returning  from  the  place  of  meeting  of  said  Commission 
or  Commissioner,  which  shall  be  ordered  paid,  upon  the 
presentation  of  proper  vouchers,  sworn  to  be  such  wit- 
nesses and  approved  by  the  Commission  or  the  chairman 
thereof  out  of  the  moneys  and  funds  arising  under  this 
Act ;  provided  that  no  witness  shall  be  entitled  to  any  wit- 
ness fee  or  mileage  who  is  directly  or  indirectly  interested 
in  any  public  utility  involved  in  or  concerning  which,  in 
any  way,  the  investigation  or  hearing  on  account  of  which 
he  is  summoned  shall  relate,  or  who  in  anywise  inter- 
ested in  any  stock,  bond,  mortgages,  security  or  earnings 
of  any  such  utility,  or  who  shall  be  the  agent,  attorney  or 
employe  of  such  utility,  or  any  officer  thereof,  when  sum- 
moned at  the  instance  of  such  utility;  and  no  witness  fur- 
nished with  free  transportation  shall  receive  pay  for  the 
distance  he  may  have  traveled  on  such  free  transportation. 

Section  10.  In  case  any  witness  shall  fail  or  refuse 
to  obey  a  subpoena  by  the  Commission,  or  a  Commissioner, 
the  Commission  or  Commissioner  may  issue  an  attachment 
for  such  witness  directed  to  any  sherifif  or  any  constable 
of  the  State  of  Texas,  and  compel  him  to  attend  before  the 
Commission  or  any  Commissioner  thereof,  and  give  his 
testimony  upon  such  matters  as  may  be  lawfully  required 
of  him,  and  to  bring  with  him  and  produce  on  exam- 
ination such  records,  books,  vouchers,  memoranda,  true 
copies  thereof,  prints  and  such  other  matter  as  may  be 
required,  if  any,  in  such  subpoena.  Should  a  witness  fail 
or  refuse  to  attend  on  being  summoned,  or  to  answer  any 
question  propounded  to  him,  or  to  produce  any  record  or 
data  required  to  be  produced  by  such  subpoena,  the  claim 


212  Oil  and  Gas  Laws 

that  any  such  testimony  may  tend  to  criminate  the  person 
giving  it  shall  not  excuse  such  witness  from  testifying  or 
producing  such  records  and  data,  but  such  evidence  or  tes- 
timony shall  not  be  used  against  such  person  on  the  trial 
of  any  criminal  proceeding.  The  sheriff  or  constable  exe- 
cuting any  process  issued  by  the  Commissioner  thereof, 
under  the  provisions  of  this  Act  shall  receive  such  com- 
pensation as  may  be  allowed  by  the  Commission  not  to 
exceed  the  fees  prescribed  by  law  by  a  similar  service. 
For  the  purpose  of  enforcing  this  Act,  and  generally,  the 
power  and  authority  is  hereby  conferred  upon  the  Com- 
mission to  punish  for  contempt  as  courts  of  record  under 
existing  law. 

Section  11.  Except  as  in  this  section  provided,  every 
gas  utility  subject  to  the  provisions  of  this  Act,  on  or  be- 
fore the  first  day  of  January,  1921,  and  quarterly  there- 
after, shall  file  with  the  Commission  a  statement,  duly  ceri- 
fied  as  true  and  correct  by  the  president,  treasurer  or  gen- 
eral manager,  if  a  company  or  corporation,  or  by  the  owner 
or  one  of  them,  of  an  individual  or  copartnership,  showing 
the  gross  receipts  of  such  utility  for  the  quarter  next  pre- 
ceding or  for  such  portion  of  said  quarterly  period  as 
such  utility  may  have  been  conducting  any  business,  and 
at  such  time  shall  pay  into  the  State  Treasury  at  Austin, 
Texas,  a  sum  equal  to  one- fourth  of  one  per  cent  of  the 
gross  income  received  from  all  business  done  by  it  within 
this  State  during  said  quarter,  to  be  designated  as  the  "Gas 
Utilities  Fund."  The  gross  receipts  tax  charge  herein  re- 
quired to  be  paid,  when  paid,  shall  be  allowed  as  an  oper- 
ating expense. 

Section  12.  The  salary  and  expense  of  the  "Expert" 
and  of  his  assistantets,  if  any,  and  the  salaries,  wages,  fees, 
and  expenses  of  every  other  person  employed  or  appointed 
by  the  Commission  under  the  provisions  of  this  Act,  and 
all  other  expenses,  costs  and  charges,  including  witness 
fees  and  mileage  fees  and  mileage,  incurred  by  or  under 
authority  of  the  Commission  or  a  Commissioner,  in  ad- 
ministering and  enforcing  the  provisions  of  this  Act,  or 
in  exercising  any  power  and  authority  hereunder,  shall 
be   paid    from   and   out   of   the   gas   utilities    fund   by   the 


Oil  and  Gas  Laws  213 

State  Treasurer  on  warrant  of  the  Comptroller  of  Public 
Accounts,  or  order  or  voucher  approved  by  the  Commis- 
sion or  the  chairman  thereof.  If  the  amount  or  total  of 
such  gross  receipt  charges  collected  shall  not  be  sufficient, 
during  any  quarterly  period,  to  pay  such  salaries,  costs, 
charges,  fees  and  expenses,  then  the  deficit  shall  be  paid 
by  the  State  Treasurer  out  of  the  general  revenue  not  oth- 
erwise appropriated.  Until  sufficient  funds  have  accrued 
to  said  gas  utilities  fund  from  payment  of  said  gross  re- 
ceipts tax,  said  expenses  shall  be  paid  by  the  State  Treas- 
urer out  of  the  general  revenue  not  otherwise  appropri- 
ated. Any  surplus  remaining  in  the  gas  utilities  fund,  after 
paying  all  such  salaries,  costs,  fees  and  charges  after  de- 
ducting such  amounts  as  may  be  contracted  to  be  paid 
and  incurred  and  such  as  may  be  reasonably  estimated 
by  the  Commission  for  its  use,  shall  be  paid  over  to 
the  general  revenue  fund  at  the  end  of  such  quarterly 
period.  Provided  the  expenses  authorized  in  this  section 
shall  never  exceed  in  any  one  calendar  year  the  sum  of 
$20,000. 

The  Commission  shall  on  December  1,  1920,  and  an- 
nually thereafter,  make  a  sufficiently  full  and  comprehen- 
sive report  to  the  Governor,  which  shall  be  by  him  trans- 
mitted to  the  next  succeeding  session  of  the  Legislature 
of  the  State,  showing  in  due  and  sufficient  detail : 

1.  The  proceedings  of  said  Commission  to  such  time 
with  respect  to  the  gas  utilities  defined  herein. 

2.  The  receipts  in  the  "gas  utilities  fund"  from  all 
sources,  and  indicating  the  different  sources. 

3.  The  expenditures  made  under  and  in  accordance 
with  this  Act,  the  nature  of  such  expenditures,  and  which 
shall  also  include  in  addition  to  other  items  or  expendi- 
tures, the  names,  titles,  nature  of  employment,  salaries 
of  and  pa3mients  made  to  all  persons  employed  for  any 
purpose  under  the  terms  of  this  Act,  with  statement  of 
traveling  and  other  expenses  incurred  by  each  of  said  per- 
sons and  approved  by  the  Commission, 

Section  13.  Every  gas  utility  as  defined  in  the  Act  shall 
have  an  office  in  one  of  the  counties  of  this  State  in  which 


214  Oil  and  Gas  Laws 

its  property  or  some  part  thereof  is  located  and  shall  keep 
in  the  said  office  all  books,  accounts,  papers,  records,  vouch- 
ers and  receipts  as  shall  be  required  by  the  Commission. 
No  books,  accounts,  papers,  records,  receipts,  vouchers  or 
other  data  required  by  the  Commission  to  be  so  kept  shall 
be  at  any  time  removed  from  this  State  except  upon  such 
conditions  as  may  be  prescribed  by  the  Commission. 

Section  14.  If  any  gas  utility  or  other  party  at  interest 
be  dissatisfied  with  the  decisions  of  any  rate,  classifica- 
tion, rule,  charge,  order,  act  or  regulation  adopted  by  the 
Commission,  such  dissatisfied  utility  or  party  may  file  a 
petition  setting  forth  the  particular  cause  or  causes  of 
objection  to  such  decision,  act,  rate,  rule,  charge,  classifica- 
tion or  other  order,  or  to  either  or  all  of  them,  in  a  court  of 
competent  jurisdiction  in  Travis  county,  Texas,  against  said 
Commission  as  defendant.  Said  action  shall  have  prece- 
dence over  all  other  causes  on  the  docket  of  a  different 
nature  and  shall  be  tried  and  determined  as  other  civil 
causes  in  said  court.  Either  party  to  said  action  may  ap- 
peal to  the  appellate  court  having  jurisdiction  of  said  cause; 
and  said  appeal  shall  be  at  once  returnable  to  said  appel- 
late court,  at  either  of  its  terms,  and  said  action  so  appealed 
shall  have  precedence  in  said  appellate  court  of  all  causes 
of  a  different  character  therein  pending;  provided  that  if 
the  court  be  in  session  at  the  time  such  right  of  action 
accrues,  the  suit  may  be  filed  during  such  term  and  stand 
ready  for  trial  after  ten  days  notice.  In  all  trials  under 
the  foregoing  article  the  burden  of  proof  shall  rest  upon 
the  plaintiff,  who  must  show  by  clear  and  satisfactory  evi- 
dence that  the  rates,  regulations,  orders,  classifications,  acts 
or  charges  complained  of  are  unreasonable  and  unjust  to  it 
or  them. 

Section  15.  Any  public  utility  as  herein  defined  who 
shall  violate  any  provision  of  this  Act  or  who  shall  fail  to 
perform  any  duty  herein  imposed,  or  who  shall  fail  to  com- 
ply with  any  valid  order  of  the  Commission  when  not 
stayed  or  suspended  by  order  of  court,  shall  be  subject 
to  a  penalty  of  not  less  than  one  hundred  dollars  nor  more 
than  one  thousand  dollars  for  each  offense,  such  penalty 
to  be  recoverable  at  suit  of  the  Attorney  General  of  the 
State  of  Texas  in  the  name  of  the  State  and  for  its  use, 


Oil  and  Gas  Laws  215 

each  violation  to  constitute  a  separate  offense,  and  each 
day  that  such  failure  continues  shall  constitute  a  separate 
offense.  Such  penalty  together  with  reasonable  attorney's 
fees  may  also  be  recoverable  by  and  for  the  use  of  any 
person,  corporation  or  association  of  persons  against  whom 
there  shall  have  been  unlawful  discrimination  as  herein 
defined;  such  suit  to  be  brought  in  the  name  of  and  for 
the  use  of  the  party  aggrieved  and  may  be  maintained  in 
any  court  of  proper  jurisdiction,  having  due  regard  to  the 
ordinary  statutes  of  venue.  For  the  willful  violation  of 
the  provisions  hereof  on  the  part  of  persons,  firms  and  cor- 
porations owning,  operating  or  controlling  gas  pipe  lines 
it  is  hereby  provided  that  the  owners,  officers,  agents  and 
employes  of  such  gas  pipe  lines  who  may  be  guilty  thereof 
shall  de  deemed  guilty  of  a  misdemeanor  and  each  violation 
of  such  provisions  shall  be  deemed  a  separate  offense  and 
upon  conviction  thereof  the  party  violating  same  shall  be 
fined  in  a  sum  not  less  than  fifty  dollars  nor  more  than  one 
thousand  dollars  and  may  be  further  punished  by  confine- 
ment in  the  county  jail  for  not  less  than  ten  days,  nor  moi^ 
than  six  months. 

Section  16.  Whenever  any  person,  firm  or  corporation 
owning,  operating  or  controlling  such  gas  pipe  line  coming 
under  the  provisions  of  this  Act  shall  violate  any  of  the 
provisions  of  this  Act  or  any  of  the  rules  or  regulations 
of  the  Commission,  the  Commission  shall,  whenever  in  its 
judgment  the  public  interests  require  it,  apply  to  any  court 
of  this  State  having  jurisdiction  and  venue  thereof  for  a 
receivership  of  such  concern  guilty  of  such  violation.  Such 
receiver  shall  control  and  manage  the  property  of  such  gas 
pipe  line  under  the  direction  of  the  court  as  is  now  provided 
by  law  in  receivership  matters.  The  grounds  for  appoint- 
ment of  receiver  provided  for  in  this  section  shall  be  in 
addition  to  other  grounds  now  provided  under  the  existing 
law. 

Section  17.  This  Act  shall  be  cumulative  of  all  laws 
of  this  State,  which  are  not  in  direct  conflict  herewith,  re- 
garding the  control  of  gas  and  pipe  line  companies  or  simi- 
lar corporations  in  this  State. 

Section  18.  If  any  provisions  of  this  Act  shall  be  held 
unconstitutional  or  for  any  other  reason  shall  be  held  to 


216  Oil  and  Gas  Laws 

be  void,  such  holding  shall  not  have  the  effect  to  nullify 
the  remaining  parts  of  this  Act,  but  the  parts  not  so  held  to 
be  void  shall  nevertheless  remain  in  full  force  and  effect. 

Section  19.  Whereas  there  is  no  law  in  this  State  reg- 
ulating corporations,  persons  or  associations  of  persons  en- 
gaged in  the  business  of  transporting,  distributing  and  sell- 
ing gas  by  pipe  line,  and  no  law  bringing  corporations,  per- 
sons and  associations  of  persons  so  engaged  in  such  busi- 
ness within  the  definition  of  pubUc  utilities,  and  no  tribunal 
having  jurisdiction  thereof,  therefore,  it  is  hereby  declared 
that  an  emergency  exists  creating  an  imperative  public  ne- 
cessity for  the  suspension  of  the  constitutional  rule  requir- 
ing bills  to  be  read  on  three  several  days  and  the  same  is 
hereby  suspended,  and  this  law  shall  take  effect  and  be  in 
from  and  after  its  passage,  and  it  is  so  enacted. 


Oil  and  Gas  Laws  217 

Forms 


PRODUCER'S  88   SPECIAL— TEXAS   FORM 

Agreement,  made  and  entered  into  the day  of 19—., 

by    and    between of ,     hereinafter     called 

lessor    (whether   one    or   more),   and hereinafter 

called   lessee: 

Witnesseth:    That  the   said  lessor,  for  and  in  consideration 

of Dollars,  cash  in  hand  and  paid,  receipt  of  which 

is  hereby  acknowledged,  and  of  the  covenants  and  agreements 
hereinafter    contained    on    the   part    of    lessee   to   be    paid,   kept 

and  performed,  ha granted,  demised,  leased  and  let,  and  by 

these    presents    do grant,    lease    and    let    unto    the    said 

lessee  for  the  sole  and  only  purpose  of  mining  and  operating 
for  oil  and  gas  and  of  laying  pipe  lines  and  of  building  tanks, 
power  stations  and  structuics  thereon  to  produce,  save  and 
take  care  of  said  products,  all  that  certain  tract  of  land  situ- 
ated  in  the   county  of ,   State  of  Texas,   described   as 

follows,  to-wit: 

and  containing acres,  more  or  less. 

It  is  agreed  that  this  lease  shall  remain  in  force  for  a 
term  of _ years  from  this  date,  and  as  long  there- 
after as  oil  or  gas,  or  either  of  them  is  produced  from  said 
land  by   the  lessee. 

In  consideration  of  the  premises  the  said  lessee  covenants 
and  agrees: 

1st.     To  deliver  to  the  credit  of  lessor,  free  of  cost,  in  the 

pipe  line  to  which may  connect „ wells,  the 

equal  one-eighth  part  of  all  oil  produced  and  saved  from  the 
leased   premises. 

2nd.     To   pay   the   lessor Dollars,   each   year 

in  advance  for  the  gas  from  each  well  where  gas  only  is 
found,  while  the  same  is  being  used  oflF  the  premises,  and  les- 
sor to  have  gas  free  of  cost  from  any  such  well  for  all  stoves 
and   all    inside   lights    in   the   principal    dwelling  house    on    said 

land  during  the  time  by  making own  connections   with 

the   well   at _ _own   risk   and   expense. 

3rd.     To  pay  lessor  for  gas  produced  from  any  oil  well  and 

used  of?  the  premises  at  the  rate   of Dollars  per 

year,  for  the  time  during  which  such  gas  shall  be  used,  said 
payments   to  be  made  each  three   months   in  advance. 

If   no   well   be   commenced   on   said   land   on   or   before   the 

day    of 19 this    lease    shall    terminate   as 

to  both  parties,  unless  the  lessee  on  or  before  that  date  shall 
pay  or   tender  to   the   lessor,   or  to  the   lessor's   credit   in   the 

Bank    at ,    or    its    successors,    which 

shall  continue  as  the  depository,  regardless  of  changes  in  the 

ownership    of    said    land,    the    sum    of Dollars, 

which  shall  operate  as  rental  and  cover  the  privilege  of  defer- 
from  said  date.  In  like  manner  and  upon  like  payments  of 
tenders  the  commencement  of  a  well  may  be  further  deferred 
for  like  periods  of  the  same  number  of  months  successively. 
ring   the   commencement   of   a   well   for _ -...months 


218  Oil  and  Gas  I^aws 

And  it  is  understood  and  agreed  that  the  consideration  first 
recited  herein,  the  down  payment,  covers  not  only  the  privi- 
lege granted  to  the  date  when  said  first  rental  is  payable  as 
aforesaid,  but  also  the  lessee's  option  of  extending  that  period 
as  aforesaid,  and  any  and  all  other  rights  conferred. 

Should  the  first  well  drilled  on  the  above  described  land  be 
a  dry  hole,  then  and  in  that  event,  if  a  second  well  is  not 
commenced  on  said  land  within  twelve  months  thereafter,  this 
lease  shall  terminate  as  to  both  parties,  unless  the  lessee  on 
or  before  the  expiration  of  said  twelve  months  shall  resume 
the  payments  of  rentals  in  the  same  amount  and  in  the  same 
manner  as  hereinbefore  provided.  And  it  is  agreed  that  upon 
the  resumption  of  the  payments  of  rentals,  as  above  provided, 
that  the  last  preceding  paragraph  hereof,  governing  the  pay- 
ment of  rentals  and  the  effect  thereof,  shall  continue  in  force 
just  as  though  there  had  been  no  interruption  in  the  rental 
payments. 

If  said  lessor  owns  a  less  interest  in  the  above  described 
land  than  the  entire  and  undivided  fee  simple  estate  therein, 
then    the    royalties    and    rentals    herein    provided    for    shall    be 

paid    the    said    lessor    only    in    proportion    which 

interest  bears  to  the  whole  and  undivided  fee. 

Lessee  shall  have  the  right  to  use,  free  of  cost,  gas,  oil 
and  water  produced  on  said  land  for  all  operations  thereon, 
except   water   from   wells   of  lessor. 

When    requested    by   lessor    lessee    shall    bury pipe 

line   below  plow  depth. 

No  well  shall  be  drilled  nearer  than  200  feet  to  the  house 
or  barn  now  on  said  premises  without  the  written  consent  of 
the  lessor. 

Lessee    shall    pay   for    damages   caused   by   all    operations   to 
growing  crops  on  said  land. 

Lessee  shall  have  the  right  at  any  time  to  remove  all 
machinery  and  fixtures  placed  on  said  premises,  including  the 
right   to  draw  and  remove  casing. 

If  the  estate  of  either  party  hereto  is  assigned — and  the 
privilege  of  assigning  in  whole  or  in  part  is  expressly  allowed 
— the  covenants  hereof  shall  extend  to  their  heirs,  executors, 
administrators,  successors,  or  assigns,  but  no  change  in  the 
ownership  of  the  land  or  assignment  of  rentals  or  royalties 
shall  be  binding  on  the  lessee  until  after  the  lessee  has  been 
furnished  with  a  written  transfer  or  assignment,  or  a  copy 
thereof;  and  it  is  hereby  agreed  that  in  the  event  this  lease 
shall  be  assigned  as  to  a  part  or  as  to  parts  of  the  above 
described  lands  and  the  assignee  or  assignees  of  such  part  or 
parts  shall  fail  or  make  default  in  the  payment  of  the  pro- 
portionate part  of  the  rents  due  from  him  or  them,  such  de- 
fault shall  not  operate  to  defeat  or  affect  this  lease  in  so  far 
as  it  covers  a  part  or  parts  of  said  lands  upon  which  the  said 
lessee  or  any  assignee  thereof  shall  make  due  payment  of  said 
rental. 

Lessor  hereby  warrants  and  agrees  to  defend  the  title  to 
the  lands  herein  described  and  agrees  that  the  lessee  shall 
have  the  right  at  any  time  to  redeem  for  lessor,  by  payment, 
any  mortgages,  taxes,  or  other  liens  on  the  above  described 
lands,  in  the  event  of  default  of  payment  by  lessor,  and  be 
subrogated  to  the  rights  of  the  holder  thereof. 

In  testimony  whereof  we  sign,  this  the day  of 19 


Oil  and  Gas  Laws  219 

State   of  Texas, 
County  of 

Before  me, a  Notary  Public  in  for  the  County 

of and   State   of   Texas,    on   this    day   personally 

appeared known    to    me    to   be   the    person 

whose    name subscribed    to    the    foregoing    instrument, 

and  acknowledged  to  me  that  he executed  the  same  for 

the  purposes  and  consideration  therein  expressed. 

Given  under  my  hand  and  seal  of  office  on  this  the 

Q-ay   of ,  A.   D.   19 

Notary  Public  in  and  for County,  Texas 

State   of  Texas, 
County  of 

Before  me, a  Notary  Public  in  for  the  County 

of and   State   of   Texas,   on   this   day   personally 

appeared known  to  me  to  be  the  person  whose 

name  is  subscribed  to  the  foregoing  instrument  as 

of acknowledged    to    me    that    he    executed    the 

same  for  the  purposes  and  consideration  therein  expressed, 
and  as  the  act  and  deed  of  said 

Given  una'er  my  hand  and  seal  of  office  on  this  the 

Q'ay   of ,  A.   D.   19 

Notary  Public  in  and  for County,  Texas 

State   of  Texas, 
County  of 

Before  me, a  Notary  Public  in  for  the  County 

of and   State   of   Texas,    on   this    day   personally 

appeared wife known  to  me  to  be  the 

person  whose  name  is  subscribed  to  the  foregoing  instrument, 
and  having  been  examined  by  me  privily  and  apart  from  her 
husband,  and  having  the  same  fully  explained  to  her,  she  the 

said acknowledged    such    instrument   to    be    her 

act  and  deed,  and  declared  that  she  had  willingly  signed  the 
same  for  the  purposes  and  consideration  therein  expressed, 
and  that  she  did  not  wish  to  retract  it. 

Given  under  my  hand  and  seal  of  office  on  this  the 

day   of ,  A.   D.   19 


Notary  Public  in  and  for. — County,  Texas 


220  Oil  and  Gas  L,aws 

ASSIGNMENT  OF   OIL  AND   GAS   LEASE— 85 

Whereas,   On   the day   of 19 ,   a 

certain   oil   and   gas   mining   lease   was  made   and  entered   into 

by   and    between .Lessor....,    and    „ 

Lessee ,  covering  the  following  described  land  in  the  county 

of and   State  of  Texas,   to-wit: 

Said  lease  being  recorded*  in  the  office  of  the  County  Clerk 
in  and  for  said  county  in  book page and 

Whereas,  The  said  lease  and  all  rights  thereunder  or  inci- 
dent thereto,  are  now  owned  by 

Now,  Therefore,  For  and  in  consideration  of  One  Dollar 
(and  other  good  and*  valuable  considerations),  the  receipt  of 
which  is  hereby  acknowledged,  the  undersigned,  the  present 
owner of  the  said  lease  and  all  rights  thereunder  or  inci- 
dent thereto,  do hereby  bargain,   sell,   transfer,  assign  and 

convey  all  rights,  title  and  interest  of  the  original   lessee  and 

present   owner in   and"  to    said   lease   and    rights    thereunder 

in  so  far  as  it  covers  the 

together  with  all  personal  property  used  or  obtained  in  con- 
nection therewith  to and heirs,  succes- 
sors and  assigns. 

And  for  the  same  consideration,  the  undersigned  for 

and - heirs,    successors    and    representatives,    do 

covenant  with  the  said  assignee heirs,  successors,  or 

assigns    that the   lawful    owner of   the    said 

lease  and  rights  and*  interests  thereunder  and  of  the  personal 
property    thereon    or    used    in    connection    therewith;    that    the 

undersigned good  right  and  authority  to  sell  and 

convey  the  same,  and  that  said  rights,  interest  and  property 
are  free  and  clear  from  all  liens  and  incumbrances,  and  that 
all  rentals  and  royalties  d'ue  and  payable  thereunder  have 
been  duly  paid;  and  that  the  undersigned  will  warrant  and 
defend  the  same  against  the  lawful  claims  and  d'emands  of 
all  persons  whomsoever. 

In  Witness  Whereof,  The  undersigned  owner and  as- 
signor  ha signed  and  sealed  this  instrument  this 

day   of - 19 

_ (Seal) 

(Seal) 

(Seal) 

(For  Acknowledgments,  see  under  Lease  Form.) 


Oil  and  Gas  Laws  221 

ROYALTY  CONTRACT. 

The    State    of    Texas. 

County   of 

Know  All   Men   By  These   Presents: 

That of  the  County  of ,  State  of 

Texas,  ha and  by  these  presents  do grant,  bargain,  sell, 

convey,   set   over  ana'  assign  and   deliver  unto the 

following  to-wit: 

interest  in  and  to  all  of  the  oil,  gas  and  other 

minerals    in    and    under   and    that   may    be    produced    from    the 

following    described    lands    situated    in County, 

Texas,   to-wit: 

together  with  the  right  of  ingress  and  egress  at  all  times  for 
the  purpose  of  mining,  drilling  and  exploring  said"  lands  for 
oil,  gas  and  other  minerals,  and  removing  the  same  therefrom. 

And    said    above    described    lands    being   now    under    an    oil 

and   gas   lease  originally  executed   in   favor   of and 

now  held  by ,  it  is  understood  and  agreed  that 

this  sale  is  made  subject  to  said  lease,  but  covers  and  in- 
cludes  of    all    the    oil    royalty    and    gas    rental    or 

royalty  due  and  to  be  paid  under  the  terms   of  said  lease. 

It  is  agreed  and   understooo'  that of  the 

money  rentals  which  may  be  paid  to  extend  the  term  within 
which  a  well   may  be  begun  under   the  terms  of   said   lease   is 

to  be  paid   to   the   said ,  and   in   the   event   that 

the  said  above  described'  lease  for  any  reason  becomes  can- 
celled or  forfeited,  then  and  in  that  event,  the  lease  interests 
and   all    future   rentals    on    said    land,    for   oil,   gas   and   mineral 

privileges   shall   be    owned   jointly  by and 

each    owning interest    in    all 

oil,  gas  and  other  minerals  in  and  upon  said  land,  together 
with interest  in  all  future  rents. 

This  sale  is  made   for  and   in   consideration   of  the    sum   of 

Dollars,  cash  in  hand  paid,  the  receipt  of  which 

is   hereby   acknowledged. 

To    Have   and    to    Hold,   the   above    described    property,    to- 
gether   with    all    and    singular    the    rights    and    appurtenances 

thereto   in   anywise   belonging   unto   the    said 

heirs  and  assigns   forever,  and do   hereby  bind   ourselves, 

heirs,  executors  and  administrators  to  warrant  and  forever 
defend  all  and  singular  the  said  property  unto  the  said 
heirs  and  assigns  against  every  person  whom- 
soever lawfully  claiming  or  to  claim  the  same  or  any  part 
thereof. 

Witness hand this,   the   dav  of 

A.    D.    19 

Witnesses: 


(For  Acknowledgments,  see  under  Lease  Form.) 


222  Oil  and  Gas  Laws 

MINERAL  DEED. 

State  of  Texas, 

County    of 

Know  All  Men  By  These  Presents: 

That of   County,   Texas,    for 

and    in    consideration    of    the    sum    of Dollars 

($ )    cash  in   hano'  paid   by hereinafter 

called  Grantee ,  the  receipt  of  which  is  hereby  acknowl- 
edged, have  granted,  sold,  conveyed,  assigned  and  delivered 
and  by  these  presents  do  grant,  sell,  convey,  assign  and  a'eliv- 

er  unto  the  said  Grantee an  undivided interest 

in  and  to  all  of  the  oil,  gas  and  other  minerals  in  and  under, 
and   that  may  be  produceo'  from  the  following  described  land 

situated   in County,   Texas,   to-wit: 

Together  with  the  right  of  ingress  and  egress  at  all  times  for 
the  purpose  of  mining,  drilling  and  exploring  said  land  for 
oil,  gas  and  other  minerals,  and  removing  the  same  there- 
from. 

Said   land  being  now  under  an   oil  and'  gas   lease   executed 

in   favor   of ,   it  is   understood   and   agreed   that 

this  sale  is  made  subject  to  the  terms  of  said  lease,  but  covers 

and  includes of  all  of  the  oil  royalty  and  gas  rental 

or  royalty  due  ano'  to  be  paid  under  the  terms  of  said  lease. 

It  is  understood  and   agreed   that of   the   money 

rentals  which  may  be  paid  to  extend  the  term  within  which 
a  well  may  be  begun  under  the  terms  of  said  lease  is  to  be 
paid  to  the  said  Grantee and  in  event  that  the  above  de- 
scribed' lease    for   any   reason    becomes    cancelled    or    forfeited, 

then  and  in  that  event  an  undivided of  the  lease 

interests  and  all  future  rentals  on  said  land  for  oil,  gas  and 
other    mineral    privileges    shall    be    owned    by    said     Grantee, 

owning of    all    oil,    gas    and    other 

minerals  in  and  under  said  lane's,  together  with 

interests  in  all  future  rents. 

To  have  and  to  hold  the  above  described  property  together 
with  all  and  singular  the  rights  and  appurtenances  thereto  in  any- 
wise belonging  unto  the  said  Grantee herein, heirs 

and  assigns  forever  and  do  hereby  bind 

heirs,  executors  and  administrators  to  warrant  and  forever 
defend  all  and  singular  the  said  property  unto  the  said  Gran- 
tee  herein, heirs   and   assigns  against  every 

person  whomsoever  lawfully  claiming  or  to  claim  the  same 
or  any  part  thereof. 

Witness hand this   the day  of 19 

Witnesses: 


(For   Acknowledgments,    see   under   Lease    Form.) 


Oil  and  Gas  Laws  223 

RELEASE  OF  OIL  LEASE. 

Know  all  Men  by  These  Presents: 
The   State   of   Texas, 

County  of _ 

That 

does  hereby  release,  relinquish  and   surrender  to 

,  heirs  or  assigns,  all  right, 

title  and  interest  in  and  to  a  certain  oil  and  gas  mining  lease 

made  and  entered  into  by  and  between 

,  of _ _- 

as  lessor ,  and ,  as  lessee 

dated  the „day  of ,  19 ,  covering  the  fol- 
lowing described  land  in  the  county  of and   State   of 

Texas,   towit: _ 

said  lease  being  recorded  in  the  office  of  the  County  Clerk  in 

and  for  said  County,  in  Book at  page 

In  Witness  Whereof,  The  undersigned  owner and 

releasor ha signed   and   sealed   this    instrument    this 

day  of  19 

....(Seal) 

- (Seal) 

(Seal) 

(For  Acknowledgements,  see  under  Lease  Form.) 


INDEX 


ABANDONMENT 

Damaged  Wells  to  be 172 

Deed    of    Relinquishment 120 

Releasing    of    Permit 133 

Under  Salt  Water  Lakes  Act 137 

Wells 

Notice  to  Rail  Road  Commission 172 

Plugging 172 

ACCOUNTS 

Books  and  Records  Must  Be  Kept 

By  All 167 

By   Pipe   Lines 187 

By  Producers 167 

ACTIONS 

By  Attorney  General 184 

By  Attorney  General 188 

Injunctions ISO 

Partition    of    Oil    Land 152 

Venue  of  Mechanics  Lien 158 

ADMINISTRATORS 

May  Lease 155 

AFFIDAVITS 

Filing  &  Development  Act  of  1895 97 

Filing  &  Development  Act  of  1917 116 

Of  Accounts  Show^ing  Production 118 

Of  Intereest  in  Other  Permits 119 

With  Payment  of  Royalty  to  State 128 

With  Payment  of  Royalty  to  State 136 

AGENTS 

Owner  of  Soil  Agent  for  State 126 

Supervisor  for  Rail  Road  Commission 164 

Supervisor  for   Railroad  Commission 180 

ASSIGNMENTS 

Owner  May  Sell 121 

ATTORNEY  GENERAL'S  OPINIONS 

Boundaries — Water    Courses 70 

Combining  or   Grouping  Permits 75 

Navigable  Waters — Public     Waters 66 

BARREL 

What  is 194 

BOUNDARIES 

Offset  Well  Required 119 

Offset  Well  Required 137 

CARE 

Leaks 176 

COMMISSIONER  OF  THE  GENERAL  LAND  OFFICE 

Duties  Under  Act  of  1895 94 

Duties  Under  Act  of  1917 116 

Duties  Under  Act  of  1917 118 

Duties  Under  z\ct  of  1917 122 


Duties  Under  Act  of  1917 124 

Duties  Under  Act  of  1919 134 

Duties  Under  Act  of  1919 136 

Forfeit   Leases , 129 

Make   Regulations 116 

CONSERVATION 

Law 163 

Rules 169 

Certificate  of  Rail  Road  Commission 165 

Certificate   of    Rail    Road   Commission 170 

Keeping  of  Accounts  Act  of  36th  Second  Called  Session. . .  .167 

Notification  of  Fires  &  Leaks 176 

Penalty 166 

Plugging  Dry  or  Abandoned  Wells 172 

Shooting  of   Wells 175 

Underground.    Waste 169 

"Waste"   Defined 163 

"Waste"   Defined 169 

"Waste"  Prohibited 163 

"Waste"  Prohibited 169 

CONTRACT 

When  Oil  Accepted 197 

CORPORATION 

Increased  Power  for  Pipe  Lines 200 

Must    Keep    Records 177 

Subject  to  Rail  Road  Commission 178 

CO-TENANTS 

May   Partition   Mineral   Land 152 

DAMAGES 

Failure  to  Deliver  Oil  on  Demand 197 

Failure  lo  Receive  Oil  Tendered 196 

Payment  to  Owner  of  Soil  in  Lieu  of 119 

Removing   Casings 174 

To  Prevent  Salt  Water 170 

To    Wells 163 

DEFINITIONS 

"Barrel"    Defined 194 

"Marketable  Oil"  Defined 193 

Surveyed  and  Unsurveyed  Land 119 

"Waste"   Defined 163 

DEVELOPMENT 

Assignment  Work 96 

Forfeiture  for  Non  Development 97 

Forfeiture   for   Non   Development 128 

Of  Mineral  Claims  for  Development 95 

DRILLING 

No  Wells  Closer  Than  300  ft 180 

DISCRIMINATION 

Must  Not  be  Practiced 185 

Penalty     for 188 

EMINENT  DOMAIN 

Amendment  to    Pipe  Line  Law 200 

Power  Granted .201 


EXPENSES 

Reported  to  Rail  Road  Commission 167 

Reported  to  Rail  Road  Commission 186 

Of  R.  R.  Commission  &  Supervisor 189 

EXPLOSIONS 

Reported 198 

FILING 

Development    Work 96 

Of    Mineral    Claims 95 

FIXTURES  ' 

Lien  Against 157 

Removal     Notice 159 

FLAMBEAU  BURNER 

Limited    Number    of 170 

FORFEITURE 

Failure  to  Drill  off  Setting  Well 119 

Failure  to  Drill  off  Setting  Well 137 

Failure  to   Pay   Rent 129 

Failure  to   Pay   Rent 138 

Failure  to  W^ork 130 

For   False    Reports 119 

For   False    Reports 137 

For    Non    Development 128 

Of  Rights  of  Owner  of  Soil 127 

FORMS 

Oil  &  Gas  Lease.. 217 

Assignment  of  Lease 220 

Release  of  Lease 223 

Royalty  Contract 221 

Mineral  Deed 222 

FRANCHISE 

Pipe  Lines  Must  Secure  from  Cities 201 

GAME,  FISH  &  OYSTER  COMMISSIONER 

Make     Regulations 123 

Make     Regulations 137 

GAS 

Conservation 163 

Gas  Stata  Must  be  Plugged 170 

Must   Not   Burn   During   Day 163 

Pipe   Lines 205 

Pressure    in    Pipes 171 

Use  Limited,  Unless  Metered 166 

Waste    Penalty 164 

Waste   Penalty 169 

GAS  PIPE  LINES 

Hearings  by  R.  R.  Commission  and  Rules  to  be  Made 207 

Inspection  of  Records  &  Books  by  Supervisor 210 

Pipe  Line  Law 205 

Rates 214 

What   is   "Gas   Utility" 205 

GROUPING 

Drilling  on   Grouped   Permits 130 

Of   Permits.   Relinquishment  Act   1919 130 

University   Permits 146 


GUARDIANS 

May  Lease  Lands  of  Wards 153 

HEIRS 

May    Declare    Forfeiture 154 

May  Institute  Suit  for  Partition 152 

HIGHWAYS 

Consent  of  City  Required  for  Pipe  Lines 200 

Pipe  Lines  May  Use 203 

Repair  of,  by  Pipe  Lines 201 

Streets  and  Alleys  may  not  be  Leased 149 

INFANT 

Female,  Though  Married,  Cannot  Revoke  Lease 153 

INGRESS  AND  EGRESS 

Commissioners    Court    to    Establish    Roads 138 

Lessee  Shall  Have  Right  of , 138 

INJUNCTION 

Tndges   Shall  not  Grant,  Unless 150 

On    Drilling 150 

INSPECTION 

Adjoining  Landowner  may  Inspect  Shooting  of  Wells.. 176 
Railroad  Commission  may  Inspect  Books  &  Records 191 

JUDGMENT 

On  Mechanics  &  Material  Man's  Liens 159 

LAKES 

Salt   Water  Lakes,   Islands,  etc 133 

LAND  COMMISSIONER 

Applications  to  Lease,   Made  to , 116 

Applications  to  Lease,  Made  to 134 

LAWS 

See  Public  Lands. 

General  Laws   1883 85 

General  Laws    1889 88 

General  Laws   1895 94 

General  Laws    1913 103 

General  Laws  1917.  Oil  &  Gas 115 

General  Laws  1917.  Pipe  Lines 193 

General  Laws    1919.   Conservation 163 

General  Laws  Relinquishing  15-16  of  Oil 125 

General    Laws   Salt   Water   Lakes,   Islands,   etc 133 

General  Laws.    City   May   Lease 149 

General  Laws.    Injunctions 150 

General   Laws.   Partition 152 

General  Laws.  Guardians 153 

General  Laws.   Administrators 156 

General  Laws.   Liens 157 

General  Laws.  Gross  Production  Tax 161 

General  Laws.  Common  Carriers — Eminent  Domain 200 

General  Laws.  Reports  by  Oil  Companies 167 

General   Laws.    Validating    Act 87 

General  Laws.    Extending   Leases 141 

General  Laws.  Extending  Leases— Salt  Water  Lakes,  etc..  144 

General  Laws.  Grouping  University  Land 146 

General  Laws.  Gas  Pipe  Line  Law 204 


LEAKS  &  EXPLOSIONS 

Negligently  Permitting  Oil  to  Escape 164 

Negligently   Permitting   Oil  to  Escape 169 

Reported  to  R.  R.  Commission 165 

LEASES 

Application  for  Salt  Water  Lakes,  etc 135 

By  Administrators 155 

By    Guardians 153 

City  and  Towns  May  Lease 149 

Conditions  for  State  Lands 118 

Extending  Leases,   Salt  Water  Lakes,   etc 144 

Extending  State  Leases 140 

Forfeiture     of 128 

On  State  Lands  after  Development 117 

Public    Lands 89 

Public    Lands 123 

Public    Lands 133 

Regulations  on  State  Lands 128 

Sale  of  Salt  Water,  Islands,  etc 134 

Salt  Water  Lakes,  Islands,  etc 133 

Supervision   of   Land    Commissioner 134 

Terms   of  Leasing.  Relinquishment   Act 126 

Under    Relinquishment    Act 131 

LESSEE 

Who  may  be 115 

LESSOR 

State  as 115 

LICENSE 

Required  to  Connect  with  Pipe  Lines 165 

LIENS 

Mechanic  or  Material  Man's  Lien 158 

Owner  of  Soil  has  Second  Lien 128 

Pipe  Lines   for   Shipment 165 

State  Has  on  Oil,  for  Royalty 127 

State  Has  on  Oil,  for  Royalty 137 

MACHINERY 

Mechanic  Lien  Law 159 

MAPS 

Scale  Given  by  R.  R.  Commission 181 

MECHANICS    LIEN 157 

Law  of  1 917 157 

METER 

Gas  to  be  Metered 171 

MINERAL  CLAIMS 

Additional      Land 98 

Forfeiture  for  Non  Development 95 

Forfeiture    for   Non    Development 116 

Forfeiture   for    Non    Development 119 

Forfeiture    for    Non    Development 121 

Filing,  Surveying  &  Developing 95 

Forfeiture    for    False    Statements 121 

Forfeiture  and   Resale 100 

Non  Mineral  Land  Included 101 

Other  Mineral  Thereon 123 


MINERAL  CLAIMS  CONTINUED 

Patents 97 

Placers 101 

Protest  of  Patent 99 

Re-instatement 100 

Reservation  in  Land.  Act  of  1895 101 

Right  of  Sale 98 

Right   of    Sale 120 

Use    of    Timber 102 

Use  of  Timber 123 

MONOPOLY 

Pipe  Lines  must  not  Discriminate 186 

NOTICE 

Of  Bring  in  Wells 172 

Of   Connection  of  Pipe  Lines 165 

Of  Connection  of  Pipe  Lines 177 

Of  Plugging  Wells 172 

Of  Shooting  Wells 175 

OFFSET  WELLS 

Lessee    Must    Drill 119 

Lessee    Must    Drill 126 

Lessee    Must    Drill 137 

OIL 

Act  of  1883 85 

Conservation  of 163 

General  Law  of  1917 115 

"Marketable  Oil"  What  is. . 193 

Pipe  Lines  as  Common  Carriers 183 

Pipe  Lines  as  Common  Carriers 193 

Pipe    Lines    as    Common    Carriers 200 

Rules  to  be  Observed 169 

Waste  to  he  Prevented 170 

OIL  TANKS  &  BATTERIES 

Distance      Between 181 

Regulations 181 

ORDERS 

Rail   Road  Commission 169 

Rail   Road  Commission 191 

Rail   Road  Commission 193 

OVERCHARGE 

Recovery   from    Pipe    Lines 186 

OWNERSHIP 

State  Declared  Owner  of  Public  Lands 115 

PARTITION 

Of   Mineral  Rights 152 

PATENTS 

See  Mineral  Claims 

PAYMENT 

Rent   on    Public   Lands 1 18 

Royalty  Paid  State  Quarterly 118 

Royalty  Paid  State  Quarterly 128 


PENALTIES 

Failure  to  Report  to  R.  R.  Commission 165 

For     Waste 165 

May  Forfeit  Lease 122 

Pipe      Lines loo 

PERMITS 

To  Connect  With  Pipe  Line 165 

For  Pipe  Lines,  One  Year  Only 180 

To    Reduce    Waste 180 

PIPE  LINES 

As  Common  Carriers 183 

Deduction   Allowance 194 

Delivery,  Tender  &  Demurrage 196 

Discrimination 186 

Gas    Pipe   Lines 204 

Must    Make    Reports 191 

Power  of  Eminent  Domain 200 

Who  May  Lay  Pipe  Lines 184 

PUBLIC  LANDS 

Cash    Rental 118 

Island,    Shoreland,    Etc 134 

Land  Commissioners  to  Have  Supervision 127 

Leases    Extended    on 140 

Leases    Extended    on 141 

Mineral  Reservation  of  1907 64 

Sales      Act 42 

Scrap     Act 65 

To  Be  Leased 115 

To   Be   Leased 134 

LIni versity    Land    Act 40 

PUMPS 

Vacuum    Pumps    Prohibited 182 

RAIL  ROAD  COMMISSION 

Rules   of 167 

Rules   of 190 

Rules   of 193 

To    Enforce    Rules 164 

To    Enforce    Rules 183 

REGULATIONS 

Conferred  on  R.  R.  Commission  as  to  Oil  &  Gas 164 

Conferred  on  R.  R.  Commission  as  to  Pipe  Lines 183 

RELINQUISHMENT 

Any  Part  or  Entire  Survey 131 

To  Owner  of  Soil  15-16  of  Oil 126 

Of  Title 131 

Of  Title 137 

Validating  Act  of  1919 87 

RENTAL 

Payment  Under  Relinquishment  Act 131 

Royalty  as 134 

Salt  Water  Lakes  Island 134 

State    Lands 118 

Terms    of    Lease 126 


ROYALTY 

Amount  Due  State 128 

15-16  to  Owner  of  Soil 125 

Island   Shoreland  &   Etc., 133 

Lien  on  Oil  for  State 128 

Lien  by  Owner  of  Soil  for 128 

When  &  How  Paid  State 118 

When  &  How  Paid  State 128 

When  &  How  Paid  State 136 

RULES 

Conservation 184 

Pipe    Lines 181 

SALES 

Forfeited    Rights   under   Relinquishment   Act 127 

Land  Reserved  by  Act  of  1883 94 

Of  Leases  on  Salt  Water  Lakes,  Etc 134 

Rights   of   Under   Act    1919 137 

State  Mineral  Rights 115 

SALT   WATER   LAKES,   ISLANDS   &  SHORELANDS 

Leases 133 

Leases   Extended 144 

SURVEYS 

Under   Salt  Water  Act 136 

TAXATION 

Gross   Production   Tax 161 

Tax  by  Conservation  Law 164 

Rights  Acquired  under  Act  of  1917  Taxable 124 

TIMBER 

Privilege  of  Use 122 

TRANSPORTATION 

By  Pipe  Lines 183 

UNIVERSITY  LANDS 

Grouping    Applies    to 132 

Grouping  of   Permits 146 

VALIDATING   ACT 

Titles-Act  of  1919 87 

WASTE 

Defined   163 

Defined 169 

From  Accidents  Must  be  Reported 176 

Penalty    for 166 

WELLS 

Must  be  Three  Hundred  Feet  Between 180 

Must  Observe  Rules  in  Drilling 163 

Notice  Required  of  Intention  to  Shoot 175 

Plugging 164 

Plugging - 175 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 

Los  Angeles 

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